On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $58,884. Calvin Co. has one recorded asset, aspecialized production machine with a book value of $15,100 and no liabilities. The fair value of the machine is $88,100, and theremaining useful life is estimated to be 10 years. Any remaining excess fair value is attributable to an unrecorded process trade secretwith an estimated future life of 4 years. Calvin's total acquisition date fair value is $98,140.At the end of the year, Calvin reports the following in its financial statements:$ 65,55029,250MachineOther assets$ 13,59032,810Common stockRetained earnings$ 15,10031, 300$ 46,400RevenuesExpensesNet income$ 36,300Total assets$ 46,400Total equityDividends paid$ 5,000Determine the amounts that Beckman should report in its year-end consolidated financial statements for noncontrolling interest insubsidiary income, noncontrolling interest, Calvin's machine (net of accumulated depreciation), and the process trade secret.AmountNoncontrolling interest in subsidiary incomeTotal noncontrolling interestCalvin's machine (net accumulated depreciation)Process trade secret

Answered: Determine the amounts that Beckman…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $58,884. Calvin Co. has one recorded asset, a
specialized production machine with a book value of $15,100 and no liabilities. The fair value of the machine is $88,100, 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 $98,140.
At the end of the year, Calvin reports the following in its financial statements:
$ 65,550
29,250
Machine
Other assets
$ 13,590
32,810
Common stock
Retained earnings
$ 15,100
31, 300
$ 46,400
Revenues
Expenses
Net income
$ 36,300
Total assets
$ 46,400
Total equity
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 subsidiary income
Total noncontrolling interest
Calvin's machine (net accumulated depreciation)
Process trade secret

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Non Controlling Income is the income earned through owning the minority stake that is less than 50 per cent of the outstanding equity shares in a company or business. This is termed as non-controlling interest because the majority control or decision making power lies in the hands of the greater shareholders.

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