Problem
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $66,312. Calvin Co. has one recorded asset, a specialized production machine with a book value of $14,000 and no liabilities. The fair value of the machine is $100,000, 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 $110,520. At the end of the year, Calvin reports the following in its financial statements:
Revenues $ 57,750
Machine $ 12,600
Common stock $ 10,000
Expenses 24,150
Other assets 26,000
Retained earnings 28,600
Net income $ 33,600
Total assets $ 38,600
Total equity $ 38,600
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)
process trade secret.