On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $36,000. Calvin Co.

On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $36,000. 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 $50,000, 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 $60,000.At the end of the year, Calvin reports the following in its financial statements: Revenues $50,000 Expenses 20,000 Net income $30,000Machine $9,000 Other Assets 26,000 Total Assets 35,000Common Stock 10,000 Retained earnings 25,000 Total Equity 35,000. Dividends paid 5,000 Determine the amounts that Beckman should report in its year-end consolidated financial statements for noncontrolling interest in subsidiary income, total noncontrolling interest,Calvin’s machine (accumulated depreciation) and the process trade secret

Question:On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $36,000. Calvin Co. has one recorded asset, a specialized production machine with a book value of…

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