On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $36,000. Calvin Co. has onerecorded asset, a specialized production machine with a book value of $10,000 and no liabilities. The fair value ofthe machine is $50,000, and the remaining useful life is estimated to be 10 years. Any remaining excess fair value isattributable to an unrecorded process trade secret with an estimated future life of 4 years. Calvin's total acquisitiondate fair value is $60,000.At the end of the year, Calvin reports the following in its financial statements:$ 50,00020,000$ 30,000$ 9,00026,000$ 10,00025,000$ 35,000RevenuesMachineCommon stockExpensesOther assetsRetained earningsNet incomeTotal assets$ 35,000Total equityDividends paid$ 5,000Determine the amounts that Beckman should report in its year-end consolidated financial statements fornoncontrolling interest in subsidiary income, noncontrolling interest, Calvin's machine (net of accumulateddepreciation), and the process trade secret.AmountNoncontrolling interest in subsidiary incomeTotal noncontrolling interestCalvin's machine (net accumulated depreciation)Process trade secret

Given: To compute the given as,

Answered: DO, and the remaining use ecorded…

Business

Accounting

DO, and the remaining use ecorded process trade se 000.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 62P

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