Vinubhai On January 1, Beckman, Incorporated, acquires 60 percent of the outstanding stock of Calvin for $58,884. Calvin Company has onerecorded 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 unrecordedprocess trade secret with an estimated future life of 4 years. Calvin's total acquisition date fair value is $98,140.At the end of the year, Calvin reports the following in its financial statements:RevenuesExpensesNet incomeDividends paidRequired:31,300$ 65,55029,250MachineOther assetsTotal assets$ 13,59032,810$ 46,400Common stockRetained earningsTotal equity$ 15,100$ 46,400$ 5,000$ 36,300Determine 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.Noncontrolling interest in subsidiary incomeTotal noncontrolling interestCalvin's machine (net accumulated depreciation)Process trade secretAmount

Name: Vinubhai On January 1, Beckman, Incorporated, acquires 60 percent of t
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Description: Vinubhai On January 1, Beckman, Incorporated, acquires 60 percent of the outstanding stock of Calvin for $58,884. Calvin Company has onerecorded asset, a specialized production machine with a book value of $15,100 and no liabilities. The fair value o

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ecorded asset, a specialized production machine with a book value of $15,100 and no 88,100, and the remaining useful life is estimated to be 10 years. Any remaining exces rocess trade secret with an estimated future life of 4 years. Calvin's total acquisition di it the end of the year, Calvin reports the following in its financial statements: Revenues Expenses $ 65,550 29,250 Net income $ 36,300 Machine Other assets Total assets $ 13,590 32,810 Common stock Retained earnings $ 46,400 Total equity Dividends paid $ 5,000 equired:

ecorded asset, a specialized production machine with a book value of $15,100 and no 88,100, and the remaining useful life is estimated to be 10 years. Any remaining exces rocess trade secret with an estimated future life of 4 years. Calvin's total acquisition di it the end of the year, Calvin reports the following in its financial statements: Revenues Expenses $ 65,550 29,250 Net income $ 36,300 Machine Other assets Total assets $ 13,590 32,810 Common stock Retained earnings $ 46,400 Total equity Dividends paid $ 5,000 equired:

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 62P

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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…
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $41,568. Calvin Co. has one recorded asset, a specialized production machine with a book value of $14,200 and no liabilities. The fair value of the machine is $59,200, 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 $69,280. At the end of the year, Calvin reports the following in its financial statements: Revenues Expenses Net income Dividends paid $ 68,250 26,400 $ 41,850 $ 5,000 Machine Other assets Total assets Noncontrolling interest in subsidiary income Total noncontrolling interest Calvin's machine (net accumulated depreciation) Process trade secret $ $ Determine the amounts that Beckman should report in its year-end consolidated financial statements for noncontrolling interest in subsidiary income,…
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At the beginning of the year SassyCat acquired 30% of the outstanding common stock of LazyMouse for $1,200,000. The book value of the net assets of LazyMouse at the time of the acquisition was $4,500,000. Any excess cost over the underlying book value was assigned to a patent that was undervalued on LazyMouse's balance sheet. The patent has a remaining useful life of 5 years. For the year, LazyMouse reported net income of $300,000 and paid cash dividends of $90,000. Question 1 At the end of the year the balance of the LazyMouse investment on the books of SassyCat should be ? (enter whole dollars without dollar signs)