Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 410

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 410
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the adjustment to the fair value of the investment in WCI. This resulted in a total of $1,275,000 investment in WCI in its audited financials
for the year ended December 31, 2014. Additionally, the Company recognized a ($47,216) effect of consolidating our interest in WCI that
was previously accounted for at cost prior to December 31, 2014.

    F-15

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

Prior
to acquiring a controlling interest in WCI on January 1, 2014, Mentor accounted for the investment in WCI using the equity method based
on the ownership interest and the Company’s limited ability to exercise significant influence from December 31, 2003 to December
31, 2013. Accordingly, the investment was initially recorded at cost with adjustments to the carrying amount of the investment to recognize
our share of the earnings or losses of the investee each reporting period.

In
accordance with ASC 810-10, “Consolidation – Overall,” Mentor remeasured its previously held equity interest
in WCI at the acquisition-date fair value, which was reported at December 31, 2014 as follows:

 Schedule of equity interest at the acquisition date fair value

    Cash to acquire an additional 1% equity interest in WCI 
    $25,000 
  
    Fair value of 50% interest (1) 
     1,250,000 
  
    Investment under the equity method 
     - 
  
    Total purchase price to be allocated 
    $1,275,000 

    (1)
    The
    estimated fair value of Mentor’s previously held equity interest in WCI was valued at 1.25 times WCI’s projected 2014
    revenue.

Purchase
price allocation at 51% of WCI assets and liabilities:

 Schedule of purchase price allocation

    WCI assets and liabilities: 

    Current assets 
    $327,238 
  
    Property and equipment 
     51,239 
  
    Other assets 
     816,952 
  
    Current liabilities 
     (112,810)
  
    Long-term debt 
     (1,178,977)
  
    Net deficit 
     (96,358)
  
    Mentor equity rate 
     51%