Reference no: EM132915167

On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $43,740. 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 $61,500, 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 $72,900.

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

Revenues $64,050                        Machine $9,000                            Common stock $10,000
Expenses 26,550                          Other assets 33,500                      Retained earnings 32,500
Net income $37,500                     Total assets $42,500                      Total equity $42,500
Dividends paid $5,000

Problem 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.