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  3. on january 1, beckman, inc., acquires 60 percent o

On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for...

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Accounting

On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $62,964. Calvin Co. has one recorded asset, a specialized production machine with a book value of $14,000 and no liabilities. The fair value of the machine is $93,500, 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. Calvins total acquisition date fair value is $104,940.

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

Revenues $ 61,800 Machine $ 12,600 Common stock $ 10,000
Expenses 21,000 Other assets 33,200 Retained earnings 35,800
Net income $ 40,800 Total assets $ 45,800 Total equity $ 45,800
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, Calvins machine (net of accumulated depreciation), and the process trade secret.

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