On January1, 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 | Machine | 9,000 | Common stock | 10,000 |
| Expenses | 20,000 | Other assets | 26,000 | Retained earnings | 25,000 |
| Net income | 30,000 | Total assets | 35,000 | Total equity | 35,000 |
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 (net of accumulated depreciation), and the process trade secret.
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