On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for...
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On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $39,024. Calvin Co. has one recorded asset, a specialized production machine with a book value of $10,400 and no liabilities. The fair value of the machine is $51,400, 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 $65,040. At the end of the year, Calvin reports the following in its financial statements: Revenues $ 65,250 Machine $ 9,360 Common stock $ 10,000 Expenses 29,700 Other assets 31,190 Retained earnings 30,550 Net income $ 35,550 Total assets $ 40,550 Total equity $ 40,550 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.
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