On January 1, BigCo, Inc., acquires 60 percent of the outstanding stock of LittleCo for $39,024. Little Co 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 no controlling 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.

Answer rating: 100% (QA)

Item Value Show your work for possible partial credit Non controlling interest in subsidiary ... View the full answer