Determine the amounts that Beckman should report

Assignment Help Accounting Basics
Reference no: EM132823106

Problem - On January 1, Beckman, lnc., acquires 60 percent of the outstanding stock of Calvin for $47,220. Calvin Co. has one recorded asset, a specialized production machine with a book value of $16,000 and no liabilities. The fair value of the machine is $68,500, 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 $78,700.

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

Revenues

$65,250

Machine

$14,400

Common stock

$16,000

Expenses

30,150

Other assets

31,700

Retained earnings

30,100

Net income

$35,100

Total assets

$46,100

Total equity

$46,100

Dividends paid

$5,000

 

 

 

 

Required - Determine the amounts that Beckman should report in its year-end consolidated financial statements for non-controlling interest in subsidiary income, non-controlling interest, Calvin's machine (net of accumulated depreciation), and the process trade secret.

Reference no: EM132823106

Questions Cloud

MGNT 984 International Business Strategies Assignment : MGNT 984 International Business Strategies Assignment Help and Solution, Sydney Business School - Assessment Writing Service
What should be the amount for current assets : The $67,600 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. What should be the amount for current assets
Explain the amounts received by Bill will be assessable : Bill and Bob have been partners in an accounting practice for the past 10 years. Explain the amounts received by Bill will be assessable
Prepare the necessary journal entries for the Webb Company : Webb Company was established on July 1. Its sales terms are 3/10, n/30. Prepare the necessary journal entries for the Webb Company
Determine the amounts that Beckman should report : Determine the amounts that Beckman should report in its year-end consolidated financial statements for non-controlling interest in subsidiary income
Determine the cost of goods sold : Determine (1) the cost of goods sold and (2) ending inventory under each of the three assumed cost flow methods
Does CMOS have an unrealized gain or loss on the bonds : CMOS Chips is hedging a 20-year, $11 million, 8% bond payable with a 20-year interest rate swap. Does CMOS have an unrealized gain or loss on the bonds
What will be the elements of the conversation : Describe the people who will potentially participate in this communication event. What will be the elements of the conversation
How do you adjust your plans for unexpected incident : What types of information would you report to her and how often and How as her appointed Project Manager will you keep her across everything adequately

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine how much alimony is deductible

Determine how much alimony is deductible by the payor ex-spouse and how much alimony is recognized as income by the recipient ex-spouse

  The information regarding mahen inc is available sales

the information regarding mahen inc. is available sales 1500000 cost of goods sold 900000 operating expenses 450000

  What is the difference between a cost and an expense when

what is the difference between a cost and an expense? when does a cost become an expense? do all costs become expenses?

  Describes three approaches to staffing policy

Your text describes three approaches to staffing policy: ethnocentric, polycentric, and geocentric. When is each approach appropriate? Explain your answer.

  Suppose mcbean inc has a 30 percent income tax rate none of

mcbean inc. reported net income of 300000 for the year ended december 31 2009. mcbean inc. had 50000 shares of common

  At what amount would the company record the land

A company purchased land, a building, and equipment for one price of $1,250,000. At what amount would the company record the land

  What will his total cost recovery deduction

If Preston wishes to maximize his total 2013 cost recovery deduction, what will his total cost recovery deduction be on the properties purchased in 2013

  Why is a stable dividend payout policy popular

Why is a stable dividend payout policy popular from the viewpoint of the corporation? Is it also popular with investors? Why? Briefly explain your answer

  What marriage date would you recommend for the loving couple

Based only on tax considerations, what marriage date would you recommend for the loving couple? How much would your choice save in taxes

  What are the tax affect to the shareholder

Shareholder give equipment FMV $190,000, basis $60,000, deb $90,000 to a corporation, and he received noting. What are the tax affect to the shareholder

  Determine the annual depreciation expense

Determine the annual depreciation expense for each of the estimated four years of use, the accumulated depreciation at the end of each year

  Generic strategy and grand strategy

Write a paper of no more than 1,400 words that evaluates alternatives an organization must consider to realize growth. Identify the best value discipline, generic strategy, and grand strategy for your organization.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd