Soft Bound Version for Advanced Accounting 13th Edition
Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Chapter 4, Problem 27P
To determine

Determine the amounts that Company B should report in its year-end consolidated financial statements for non-controlling interest in subsidiary income, non-controlling interest, Company C’s machine (net of accumulated depreciation), and the process trade secret.

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On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $58,884. Calvin Co. has one recorded asset, a specialized production machine with a book value of $15,100 and no liabilities. The fair value of the machine is $88,100, 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 $98,140. At the end of the year, Calvin reports the following in its financial statements: $ 65,550 29,250 Machine Other assets $ 13,590 32,810 Common stock Retained earnings $ 15,100 31, 300 $ 46,400 Revenues Expenses Net income $ 36,300 Total assets $ 46,400 Total equity 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…
In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain. The purchase price allocation included the following items: $5 million, patent; $4 million, trademark considered to have an indefinite useful life; and $6 million, goodwill. Burger Mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life.   What is the total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items? (Enter your answer in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)
In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain. The purchase price allocation included the following items: $4 million, patent; $5 million, trademark considered to have an indefinite useful life; and $6 million, goodwill. Burger Mania’s policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. What is the total amount of amortization expense that would appear in Burger Mania’s income statement for the first year ended December 31 related to these items?
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