# On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $58,704.... ## Question: On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for$58,704. Calvin Co. has one recorded asset, a specialized production machine with a book value of $13,100 and no liabilities. The fair value of the machine is$85,600, 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 $97,840. At the end of the year, Calvin reports the following in its financial statements:  Revenues$ 61,650 Machine $11,790 Common stock$ 10,000 Expenses $29,250 Other assets$ 25,610 Retained earnings $27,400 Net income$ 32,400 Total assets $37,400 Total equity$ 37,400 Dividends paid $5,000 Determine the amounts that Beckman should report in its year-end consolidated financial statements for: 1. noncontrolling interest in subsidiary income 2. noncontrolling interest ## Non Controlling interest Non controlling interest is the portion where the parent who has ownership of 50% or more, has no more control over its subsidiary. ## Answer and Explanation: 1. The noncontrolling interest in subsidiary income is 8,836  8,836 Net Income - Subsidiary 32,400 Amortization expenses -10,310 Income 22,090 40% Income to NCI  Amortization Expenses Machine (85,600 - 13,100) / 10 7,250 Process trade secret (84,740 - 72,500) / 4 3,060 Total 10,310 2. The noncontrolling interest ending is$45,972.

 45,972 Beginning balance (97,840 * 40%) 39,136 Net Income Allocation 8,836 Dividends (5,000 * 40%) -2,000 NCI Ending balance