Problems, points vary

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 | 14,220 | | Total noncontrolling interest | 26,016 | | LittleCo's machine (net accumulated depreciation) | Book value =9,360 | 10,400 – 1,040 Book Value51,400 – 5,140 =46,260 Fair Value | Process trade secret | 5,616 | |

20. On January 1, 2013, Subsid had common stock of $260,000 and retained earnings of $400,000. During that year, Subsid reported sales of $270,000, cost of goods sold of $140,000, and operating expenses of $54,000.

On January 1, 2011, Pair Ent, Inc., acquired 80 percent of