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ACCT - BigCo, Inc., acquires 60 percent of the outstanding stock of LittleCo

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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 $ 10,000Expenses 29,700 Other assets 31,190 Retained earnings 30,550Net Income $35,550 Total assets $ 40,500 Total equity $ 40,550Dividends paid$5,000Determine 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.;Noncontrolling interest in subsidiary incomeTotal noncontrolling interestLittleCo's machine (net accumulated depreciation)Process trade secret

 

Paper#43831 | Written in 18-Jul-2015

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