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BigCo, Inc., acquires 60 percent of the outstanding stock




Question;19.;On January 1, BigCo, Inc., acquires 60 percent of the outstanding stock of;LittleCo for $39,024. LittleCo Co. has one recorded asset, a specialized;production machine with a book value of $10,400 and no liabilities. The fair;value of the machine is $51,400, 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. LittleCo?s total;acquisition date fair value is $65,040.;At the end of the year, LittleCo reports the following in its financial;statements;Revenues $ 65,250 Machine $ 9,360 Common stock $ 10,000;Expenses 29,700 Other assets 31,190 Retained earnings 30,550;Net Income $35,550 Total assets $ 40,500 Total equity $ 40,550;Dividends paid;$5,000;Determine the amounts that BigCo should report in its year-end consolidated;financial statements for noncontrolling interest in subsidiary income, total;noncontrolling interest, LittleCo?s machine (net of accumulated depreciation);and the process trade secret. Report all amounts as positive values. Show your;work for possible partial credit.;Item (5 points each) Value Show your work for possible partial credit!;Noncontrolling interest in subsidiary income;Total noncontrolling interest;LittleCo's machine (net accumulated depreciation);Process trade secret


Paper#43406 | Written in 18-Jul-2015

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