On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $57,732. Calvin Co. has one recorded asset, a specialized production machine with a book value of $10,300 and no liabilities. The fair value of the machine is $82,300, 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 $96,220. At the end of the year, Calvin reports the following in its financial statements: Revenues$60,750 Machine$9,270 Common stock$10,300 Expenses 22,350 Other assets 34,430 Retained earnings 33,400 Net income$38,400 Total assets$43,700 Total equity$43,700 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. **Table: Financial Interests and Assets**| Description | Amount ||-------------------------------------------------|---------|| Noncontrolling interest in subsidiary income | || Total noncontrolling interest | || Calvin's machine (net accumulated depreciation) | || Process trade secret | |This table outlines various financial interests and assets, focusing on noncontrolling interests and specific tangible and intangible assets. Each row includes a description of the item, with a column for the corresponding monetary amount, which is currently unfilled.

SOLUTION- CONSOLIDATED BALANCE SHEET IS MERE CONSOLIDATION OF FINANCIAL DETAILS OF ALL A SUBSIDIARY…

Answered: On January 1, Beckman, Inc., acquires…

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 $57,732. Calvin Co. has one recorded asset, a specialized production machine with a book value of $10,300 and no liabilities. The fair value of the machine is $82,300, 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 $96,220.

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


Revenues	$	60,750	Machine	$	9,270	Common stock	$	10,300
Expenses		22,350	Other assets		34,430	Retained earnings		33,400
Net income	$	38,400	Total assets	$	43,700	Total equity	$	43,700
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.