Please help solve this. I am not getting any responses for same postings On Janu

Question

Please help solve this. I am not getting any responses for same postings On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $47,604. Calvin Co. has one recorded asset, a specialized production machine with a book value of $13,500 and no liabilities. The fair value of the machine is $65,500, 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 $79,340 At the end of the year, Calvin reports the following in its financial statements 64,950 Machine Revenues Expenses 13,500 29,100 Other assets32,200 Retained earnings 30,850 $12,150 Common stock1 Net income 35,850 Total assets $44,350 Total equity S 44,350 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 Amount Noncontrolling interest in subsidiary income Total noncontrolling interest Calvin's machine (net accumulated depreciation) Process trade secret

Explanation / Answer

Details Amt $ Book Value of Machine                           13,500 Fair value of machine                         65,500 Facir value uplift =                         52,000 60% share of fair value uplift for BEckMAn                         31,200 Net Asset Book Value                           13,500 Purchase consideration paid                         47,604 Trade secret value                              2,904 Useful life of machine in year                                    10 Yearly depreciation of fair value increase by Beckman=31200/10=                            3,120 Trade secret Useful life in Years                                      4 Yearly Amortization of Trade secret bt Beckman=                               780 Net Stock Value of Calvin during acquistion                         13,500 40% minority share =                            5,400 Net Income of Calvin in the year                           35,850 60% Share of Beckman                           21,510 40% share of Non controlling interest =                         14,340 Required Details(Beckman's Book) at Year end Amt $ Non controlling interest in Subsidiary Income=                         14,340 Total Non Controlling Interest=5400+14340=                         19,740 Calvin's Machine=(12150+31200-3120)=                         46,470 Process Trade secret =(2904-780)=                            2,124

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