The noncontrolling interest in subsidiary income and total non controlling interest
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $51,612. Calvin Co. has one recorded asset, a specialized production machine with a book value of $19,200 and no liabilities. The fair value of the machine is $75,700, 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 $86,020.
At the end of the year, Calvin reports the following in its financial statements:
Revenues |
$ |
73,350 |
Machine |
$ |
17,280 |
Common stock |
$ |
10,000 |
|||
Expenses |
29,700 |
Other assets |
31,370 |
Retained earnings |
38,650 |
||||||
Net income |
$ |
43,650 |
Total assets |
$ |
48,650 |
Total equity |
$ |
48,650 |
|||
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.
Solve:
Noncontrolling Interest om subsidiary income:
Total noncontrolling interest:
The noncontrolling interest in subsidiary income and total non controlling interest On January 1, Beckman, Inc.,...
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $51,612 Calvin Co. has one recorded asset, a speclalized production machine with a book value of $19,200 and no lablities. The falr value of the machine is $75,700, and the remalning useful life Is estlmated to be 10 years. Any remalning excess falr value is attributable to an unrecorded process trade secret wlth an estlmated future life of 4 years. Calvin's total acquisition date fair...
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $61,680. Calvin Co. has one recorded asset, a specialized production machine with a book value of $18,200 and no liabilities. The fair value of the machine is $92,200, 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...
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $60,576. 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 $90,000, 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...
#8) On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $45,948. Calvin Co. has one recorded asset, a specialized production machine with a book value of $14,900 and no liabilities. The fair value of the machine is $65,900, 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...
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...
17 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...
Check my wo On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $45,780. Calvin Co. has one recorded asset, a specialized production machine with a book value of $13,400 and no liabilities. The fair value of the machine is $ 64,900, 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...
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $57.732. Calvin Co has one recorded asset, a specialized production machine with a book value of $10,300 and no liabilities. The fair value of the machine is $82.300, 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...
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $52,608. Calvin Co. has one recorded asset, a specialized production machine with a book value of $13,300 and no liabilities. The fair value of the machine is $73,800, 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...
On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,900,320 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $475,080. Seidel’s acquisition-date total book value was $1,887,000. The fair value of Seidel’s recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets—a trademark with an indefinite life and estimated fair value of $271,950 and several customer relationships estimated to be worth $199,800 with four-year remaining lives....