Question
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $70,776. Calvin Co. has one recorded asset, a specialized production
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $70,776. Calvin Co. has one recorded asset, a specialized production machine with a book value of $19,400 and no liabilities. The fair value of the machine is $105,400, 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. Calvins total acquisition date fair value is $117,960. |
At the end of the year, Calvin reports the following in its financial statements: |
Revenues | $ | 73,650 | Machine | $ | 17,460 | Common stock | $ | 10,000 |
Expenses | 33,150 | Other assets | 28,040 | Retained earnings | 35,500 | |||
Net income | $ | 40,500 | Total assets | $ | 45,500 | Total equity | $ | 45,500 |
Dividends paid | $ | 5,000 | ||||||
|
Determine the amounts that Beckman should report in its year-end consolidated financial statements for noncontrolling interest in subsidiary income, noncontrolling interest, Calvins machine (net of accumulated depreciation), and the process trade secret. |
Noncontrolling interest in subsidiary income,Total noncontrolling interest,Calvin's machine (net accumulated depreciation),Process trade secret |
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