Determine amounts that beckman should report in its year-end

Assignment Help Financial Accounting
Reference no: EM13130046

On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $36,000. 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 $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 total acquisition-date fair value is $60,000.

At the end of the year, Calvin reports the following in its financial statements:
Revenues $50,000 Expenses 20,000 Net income $30,000
Machine $9,000 Other Assets 26,000 Total Assets 35,000
Common Stock 10,000 Retained earnings 25,000 Total Equity 35,000. Dividends paid 5,000

Determine the amounts that Beckman should report in its year-end consolidated financial statements for noncontrolling interest in subsidiary income, total noncontrolling interest,Calvin's machine (accumulated depreciation) and the process trade secret

Reference no: EM13130046

Questions Cloud

Compute percentage of nba players that have a ft lower : FT% is normally distributed with a mean of 0.721 and a standard deviation of 0.082. Which percentage of NBA players have a FT% lower than 0.784? (Round off to the nearest percent.)
What are the key components of stockholder equity : Explain the accounting and reporting for stockholder's equity. How are restrictions on retained earnings reported? What are the key components of stockholder's equity? Indicate how to present and analyze stockholder's equity.
What is effect on earnings in the year : The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated, ignoring taxes, what is effect on earnings in the year after the options are granted to executives?
What is the ph of a solution : What is the pH of a solution in which 258 mL of  HCl(g), measured at 27.5^circ C and 1.02 atm, is dissolved in 1.5  L of aqueous solution?
Determine amounts that beckman should report in its year-end : Determine amounts that Beckman should report in its year-end consolidated financial statements for noncontrolling interest in subsidiary income, total noncontrolling interest,Calvin's machine (accumulated depreciation) and the process trade secret..
Write a 2 pages paper about capitalism : write a 2 pages paper about capitalism, using the book "Ann E. Cudd and Nancy Holmstrom, Capitalism: For and Against (ISBN: 9780521132114) "
Absolute change and percentage change : Find the absolute change and the percentage change in the following case. The population of a country increased from 99 million in 1990 to 259 million in 2010.
Compute whip subchapter s income or loss : Whip, Inc., is a calendar year S Corporation. Whip's book income this year totals $90,000. Whip is owned equally by three shareholders. From supplemental data, you obtain the following information about items that are included in book income.
What does the ife suggest about expected inflation : What does the IFE suggest about differential in expected inflation in these two countries? Using this information and the PPP theory, describe the expected nominal return to U.S. investors who invest in Mexico.

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  How much external financing does ari require net year

Calculating Additional Finance Requirements - How much external financing does ARI require net year?

  Create journal entries for each situation

Limon Company uses the chart of accounts shown below. Use the numbers preceding each title to create journal entries for each situation.

  Compute the equivalent units of production

Materials are entered at the starting of the process. Conversion costs are incurred uniformly during the process. compute the equivalent units of production for (1) materials and (2) conversion costs.

  Find the correct entry for flores

Find the correct entry for Flores on November 17, assuming the correct payment was received on that date and What is the correct entry for Flores on November 10?

  Discuss briefly about the accounting and securities market

The board votes a 100% stock dividend. D iscuss b riefly about the accounting and securities market differences between these two methods of increasing the number of shares outstanding.

  Illustrate what is the market rate of return on this stock

The firm has established a pattern of increasing its dividends by 3 percent annually and expects to continue doing so. Illustrate what is the market rate of return on this stock?

  Elucidate net income would ravine corporation have reported

Elucidate net income would Ravine Corporation have reported for each of the years, assuming Ravine accounts for the intercorporate investment using (1) the cost method and (2) the equity method?

  Explain how much are the monthly payments

The loan is to be paid on a monthly basis for two years charging 12 percent interest. Explain how much are the monthly payments?

  Purpose direct materials price variance efficiency

Purpose Direct materials Price Variance Efficiency variance and Labor rate variance Labor Efficiency Variance and pass necessary comments.

  Illustrate what amount of cash did lab commercial products

During the year, Accounts Receivable decreased from $88,000 to 78,000, a decrease of $10,000. Illustrate what amount of cash did Lab Commercial Products receive from customers during 2010?

  Evaluate the correct inventory amount

Evaluate the correct inventory amount

  Recognition of contingent liability in financial statement

Recognition of contingent liability in financial statement - How would you report this contingent liability on the financial statements of your company? Justify your answer. There may be more than one acceptable accounting treatment. Pick one and e..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd