Question: On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $70,776. Calvin Co. has one recorded asset, a specialized production machine with a book value of $19,400 and no liabilities. The fair value of the machine is $105,400, 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 $117,960.
At the end of the year, Calvin reports the following in its financial statements:
| Revenues |
$ |
73,650 |
Machine |
$ |
17,460 |
Common stock |
$ |
10,000 |
| Expenses |
|
33,150 |
Other assets |
|
28,040 |
Retained earnings |
|
35,500 |
Net income
|
$
|
40,500
|
Total assets |
$
|
45,500 |
Total equity |
$ |
45,500 |
| 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.
Noncontrolling interest in subsidiary income,Total noncontrolling interest,Calvin's machine (net accumulated depreciation),Process trade secret.