Question
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $51,816. Calvin Co. has one recorded asset, a specialized production
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $51,816. Calvin Co. has one recorded asset, a specialized production machine with a book value of $13,500 and no liabilities. The fair value of the machine is $73,000, 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. Calvins total acquisition date fair value is $86,360.
At the end of the year, Calvin reports the following in its financial statements: |
Revenues | $ | 76,350 | Machine | $ | 12,150 | Common stock | $ | 10,000 |
Expenses | 34,200 | Other assets | 35,000 | Retained earnings | 37,150 | |||
Net income | $ | 42,150 | Total assets | $ | 47,150 | Total equity | $ | 47,150 |
Dividends paid | $ | 5,000 | ||||||
Determine the amounts that Beckman should report in its year-end consolidated financial statements for noncontrolling interest in subsidiary income, total noncontrolling interest, Calvins machine (net of accumulated depreciation), and the process trade secret. (Input all amounts as positive values.) |
Amounts | ||
Noncontrolling interest in subsidiary income | $ | |
Total noncontrolling interest | $ | |
Calvin's machine (net accumulated depreciation) | $ | |
Process trade secret | $ |
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