Question
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $45,780. Calvin Co. has one recorded asset, a specialized production
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $45,780. Calvin Co. has one recorded asset, a specialized production machine with a book value of $13,400 and no liabilities. The fair value of the machine is $64,900, 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 $76,300. |
At the end of the year, Calvin reports the following in its financial statements: |
Revenues | $ | 64,050 | Machine | $ | 12,060 | Common stock | $ | 10,000 |
Expenses | 26,550 | Other assets | 30,440 | Retained earnings | 32,500 | |||
Net income | $ | 37,500 | Total assets | $ | 42,500 | Total equity | $ | 42,500 |
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 -calvins machine (net accumulated depreciation) -process trade secret |
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