Advanced Accounting (Looseleaf)
12th Edition
ISBN: 9780077632595
Author: Hoyle
Publisher: MCG
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Chapter 4, Problem 27P
To determine
Determine the amounts that Company B should report in its year-end consolidated financial statements for non-controlling interest in subsidiary income, non-controlling interest, Company C’s machine (net of
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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,…
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $47,052. Calvin Co. has one recorded asset, a specialized production machine with a book value of $10,000 and no liabilities. The fair value of the machine is $66,500, 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. Calvin’s total acquisition date fair value is $78,420.
At the end of the year, Calvin reports the following in its financial statements:
Revenues
$
54,750
Machine
$
9,000
Common stock
$
10,000
Expenses
22,200
Other assets
28,550
Retained earnings
27,550
Net income
$
32,550
Total assets
$
37,550
Total equity
$
37,550
Dividends paid
$
5,000
Determine the amounts that Beckman should report in its year-end consolidated financial statements for noncontrolling interest…
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…
Chapter 4 Solutions
Advanced Accounting (Looseleaf)
Ch. 4 - Prob. 1QCh. 4 - Atwater Company acquires 80 percent of the...Ch. 4 - What is a control premium and how does it affect...Ch. 4 - Prob. 4QCh. 4 - How is the noncontrolling interest in a subsidiary...Ch. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Current liabilities: a. 50,000 b. 46,000 c. 40,000...Ch. 4 - Prob. 20PCh. 4 - Stockholders equity: a. 80,000 b. 90,000 c. 95,000...Ch. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 1DYS
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