On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for...
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Accounting
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $62,964. Calvin Co. has one recorded asset, a specialized production machine with a book value of $14,000 and no liabilities. The fair value of the machine is $93,500, 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. Calvins total acquisition date fair value is $104,940.
At the end of the year, Calvin reports the following in its financial statements:
Revenues
$
61,800
Machine
$
12,600
Common stock
$
10,000
Expenses
21,000
Other assets
33,200
Retained earnings
35,800
Net income
$
40,800
Total assets
$
45,800
Total equity
$
45,800
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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