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On January 1, BigCo, Inc., acquires 60 percent of the outstanding stock of LittleCo for $39,024

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Question;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 $ 10,000Expenses 29,700 Other assets 31,190 Retained earnings 30,550Net Income $35,550 Total assets $ 40,500 Total equity $ 40,550Dividends 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#43649 | Written in 18-Jul-2015

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