Determine the amounts that beckman should report

Reference no: EM131881117

Problem

On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $59,232. Calvin Co. has one recorded asset, a specialized production machine with a book value of $19,500 and no liabilities. The fair value of the machine is $87,000, 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 $98,720.

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

Revenues	65,550	Machine	17,550	Common stock	10,000
Expenses	26,100	Other assets	26,900	Retained earnings	34,450
Net income	39,450	Total assets	44,450	Total equity	44,450
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.

Reference no: EM131881117

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