On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $58,704. Calvin Co. has one recorded asset, a specialized production machine with a book value of $13,100 and no liabilities. The fair value of the machine is $85,600, 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 $97,840.

At the end of the year, Calvin reports the following in its financial statements:

Revenues	$	61,650	Machine	$	11,790	Common stock	$	13,100
Expenses		29,250	Other assets		28,710	Retained earnings		27,400
Net income	$	32,400	Total assets	$	40,500	Total equity	$	40,500
Dividends paid	$	5,000