5 On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $61,848. Calvin Co. has one recorded asset, a specialized production machine with a book value of $10,000 and no liabilities. The fair value of the machine is $90,000, and the remaining useful life is estimated to be 10 years. Any remaining excess fair value is attributable to an unrecorded process trade secret with an estimated future life of 4 years. Calvin's total acquisition date fair value is $103,080. At the end of the year, Calvin reports the following in its financial statements: nts mo 02:12:14 Revenues Expenses Net income $ 61,050 23,400 $ 37,650 $ 5,000 Machine Other assets Total assets $ 9,000 33,650 $ 42,650 Common stock Retained earnings Total equity $ 10,000 32,650 $ 42,650 Dividends paid Determine the amounts that Beckman should report in its year-end consolidated financial statements for noncontrolling interest in subsidiary income, noncontrolling interest, Calvin's machine (net of accumulated depreciation), and the process trade secret. Answer is complete but not entirely correct. Amount Noncontrolling interest in subsidiary income $ 10,552 Total noncontrolling interest 49,784 Calvin's machine (net accumulated depreciation) 31,000 Process trade secret 6,730 X $ S S 6 ints On January 1, 2018, Morey, Inc., exchanged $180,025 for 25 percent of Amsterdam Corporation. Morey appropriately applied the equity method to this investment. At January 1, the book values of Amsterdam's assets and liabilities approximated their fair values. On June 30, 2018, Morey paid $567,000 for an additional 70 percent of Amsterdam, thus increasing its overall ownership to 95 percent. The price paid for the 70 percent acquisition was proportionate to Amsterdam's total fair value. At June 30, the carrying amounts of Amsterdam's assets and liabilities approximated their fair values. Any remaining excess fair value was attributed to goodwill. Amsterdam reports the following amounts at December 31, 2018 (credit balances shown in parentheses): 02:11:35 Revenues Expenses Retained earnings, January 1 Dividends declared, October 1 Common stock $ (294,000) 219,000 (195,700) 30,000 (500,000) Amsterdam's revenue and expenses were distributed evenly throughout the year and no changes in Amsterdam's stock have occurred. a. Using the acquisition method, calculate the acquisition-date fair value of Amsterdam to be included in Morey's June 30 consolidated financial statements. b. Using the acquisition method, calculate the revaluation gain (or loss) reported by Morey for its 25 percent investment in Amsterdam on June 30. c. Using the acquisition method, calculate the amount of goodwill recognized by Morey on its December 31 consolidated balance sheet (assume no impairments have been recognized). d. Using the acquisition method, calculate the noncontrolling interest amount reported by Morey on its June 30 and December 31 consolidated balance sheet. Answer is complete but not entirely correct. a. b. C. Acquisition-date fair value Revaluation gain Goodwill Noncontrolling interest on June 30 Noncontrolling interest on December 31 $ 810,000 $ 13,100 $ 76,800 $ 40,500 S 43,875 d