On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $45,948. Calvin Co. has one recorded asset, a specialized production machine with a book value of $14,900 and no liabilities. The fair value of the machine is $65,900, 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 $76,580.
At the end of the year, Calvin reports the following in its financial statements:
Revenues $ 64,800 Machine $ 13,410 Common stock $ 10,000
Expenses 33,900 Other assets 22,490 Retained earnings 25,900
Net income $ 30,900 Total assets $ 35,900 Total equity $ 35,900
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.
AMOUNT
NONCONTROLLING INTEREST IN SUBSIDARY INCOME
TOTAL NONCONTROLLING INTEREST
CALVINS MACHINE (NET ACUMULATED DEPRECIATION)
PROCESS TRADE SECRET
Please show calculations; thanks.