23 - statements Revenue $50,000 Machine $9,000 Common Stock...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
23. On January 1, Beckham Inc acquires 60 percent of the outstanding stock of  Calvin for $36,000. Calvin Co. has one recorded asset, a specialized productioin  machine with a book value of $10,000 and no liabilities. The fair value of the  machine is $50,000 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 to total acquisition-date fair value  is $60,000. At the end of the year, Calvin reports the following in its financial 
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: statements: Revenue $50,000 Machine $9,000 Common Stock $10,000 Expense 20,000 Other Assets 26,000 Retained Earnings 25,000 Net income $30,000 Total Assets $35,000 Total Equity $35,000 Dividends Paid $5,000 Determine the amounts that Beckham should report in its year-end consolidated financial statements for noncontrolling interest in subsidiary income, total outstanding interest, Calvin's machine (net of accumulated depreciation), and the process trade secret....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern