Question
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $48,960. Calvin Co. has one recorded asset, a specialized production
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $48,960. Calvin Co. has one recorded asset, a specialized production machine with a book value of $19,900 and no liabilities. The fair value of the machine is $68,400, 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 $81,600.
At the end of the year, Calvin reports the following in its financial statements:
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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.
Amount | |
Noncontrolling Interest in subsidiary income | |
Total noncontrolling interest | |
Calvin's machine (net accumulated depreciation) | |
Process trade secret |
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