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Determine the amounts that beckman should report

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Reference no: EM132499306

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

Expenses 29,250                     Other assets 28,400                 Retained earnings 27,400

Net income $32,400                   Total assets. $37,400                 Total equity $37,400

Dividends paid $5,000

Question 1: 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

Reference no: EM132499306

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