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 $ 12,780 38,270 $ 51,050 Amount Common stock Retained earnings Total equity 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. $ 14,200 36,850 $ 51,050
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 $ 12,780 38,270 $ 51,050 Amount Common stock Retained earnings Total equity 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. $ 14,200 36,850 $ 51,050
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Plz answer without plagiarism
![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
$ 12,780
38,270
$ 51,050
Amount
Common stock
Retained earnings
Total equity
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.
$ 14,200
36,850
$ 51,050](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd1cd217a-0f44-4f2e-b53e-6b927170a60e%2Fb76dc981-ddca-4205-916b-f9a3ba1253e7%2F0u22qm_processed.png&w=3840&q=75)
Transcribed Image Text: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
$ 12,780
38,270
$ 51,050
Amount
Common stock
Retained earnings
Total equity
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.
$ 14,200
36,850
$ 51,050
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