On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $56,844. Calvin
Question:
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $56,844. Calvin Co. has one recorded asset, a specialized production machine with a book value of $10,000 and no liabilities. The fair value of the machine is $82,500, 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. Calvin's total acquisition date fair value is $94,740.
At the end of the year, Calvin reports the following in its financial statements:
Revenues$ 61,650 Machine $9,000 Common stock $10,000
Expenses29,250 Other assets28,400 Retained earnings 27,400
Net income $32,400 Total assets $37,400 Total equity$37,400
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, Calvin's machine (net of accumulated depreciation), and the process trade secret.
Amount
Noncontrolling interest in subsidiary income $
Total noncontrolling interest $
Calvin's machine (net accumulated depreciation) $
Process Trade Secret $