Question
In: Accounting
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $47,220....
On January 1, Beckman, Inc., 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 | $ | 10,000 | |||
| Expenses | 30,150 | Other assets | 25,700 | Retained earnings | 30,100 | ||||||
| Net income | $ | 35,100 | Total assets | $ | 40,100 | Total equity | $ | 40,100 | |||
| 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.
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Solutions
ekkarill92 answered 1 year agoRelated Solutions
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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
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$61,500, and the remaining useful life is estimated to be 10 years.
Any remaining excess fair value is attributable to an unrecorded
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recorded asset, a specialized production machine with a book value
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Any remaining excess fair value is attributable to an unrecorded
process trade secret with an estimated future life of 4 years.
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Any remaining excess fair value is attributable to an unrecorded
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Any remaining excess fair value is attributable to an unrecorded
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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...
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Any remaining excess fair value is attributable to an unrecorded
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