Reference no: EM132916754

On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $57,552. 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 $82,000, 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 $95,920.

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

Revenues $60,750
Machine $9,000
Common stock $10,000
Expenses 22,350
Other assets 34,400
Retained earnings 33,400
Net income $38,400
Total assets $43,400
Total equity $43,400
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.