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 $41,568. Calvin Co. has one recorded asset, a specialized production machine with a book value of $14,200 and no liabilities. The fair value of the machine is $59,200, 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 value is $69,280. At the end of the year, Calvin reports the following in its financial statements: Revenues Expenses Net income Dividends paid $ 68,250 26,400 $ 41,850 $ 5,000 Machine Other assets Total assets Noncontrolling interest in subsidiary income Total noncontrolling interest Calvin's machine (net accumulated depreciation) Process trade secret $ $ Determine the amounts that Beckman should report in its year-end consolidated financial statements for noncontrolling interest in subsidiary income,…
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $47,052. 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 $66,500, 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 $78,420.   At the end of the year, Calvin reports the following in its financial statements:                           Revenues $ 54,750   Machine $ 9,000   Common stock $ 10,000   Expenses   22,200   Other assets   28,550   Retained earnings   27,550   Net income $ 32,550   Total assets $ 37,550   Total equity $ 37,550   Dividends paid $ 5,000                       Determine the amounts that Beckman should report in its year-end consolidated financial statements for noncontrolling interest…
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 value is $96,220.   At the end of the year, Calvin reports the following in its financial statements:                           Revenues $ 60,750   Machine $ 9,270   Common stock $ 10,300   Expenses   22,350   Other assets   34,430   Retained earnings   33,400   Net income $ 38,400   Total assets $ 43,700   Total equity $ 43,700   Dividends paid $ 5,000                       Determine the amounts that Beckman should report in its year-end consolidated financial statements for noncontrolling interest…
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