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

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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 
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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....
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This note was uploaded on 12/05/2011 for the course ACC 134 taught by Professor Erik during the Fall '11 term at Colorado.

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