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On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $51,612. Calvin Co. has one recorded asset, a specialized production
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $51,612. Calvin Co. has one recorded asset, a specialized production machine with a book value of $19,200 and no liabilities. The fair value of the machine is $75,700, 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 $86,020.
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