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1 Pie Corporation acquired 80 percent of Slice Company's common stock on December 31, 20X5, at underlying book value. The book values and fair values
1 Pie Corporation acquired 80 percent of Slice Company's common stock on December 31, 20X5, at underlying book value. The book values and fair values of Slice's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 20 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5: 25 points Credit Cash Debit $ 28,100 65,800 91,400 202,000 103,600 23,600 30,500 14,600 eBook Accounts Receivable Inventory Buildings and Equipment (net) Cost of Goods Sold Depreciation Expense Other Operating Expenses Dividends Declared Accounts Payable Notes Payable Common Stock Retained Earnings Sales Total p Print $ 33, 440 115,000 87,600 129,500 194,060 $559, 600 References $ 59,600 $559, 600 Required: a. How much did Pie pay to purchase its shares of Slice? (Round your answer to nearest whole dollar amount.) Purchase price $ 87,600 b. If consolidated financial statements are prepared at December 31, 20X5, what amount will be assigned to the noncontrolling interest in the consolidated balance sheet? (Round your answer to nearest whole dollar amount.) Noncontrolling interest c. If Pie reported income of $142,750 from its separate operations for 20X5, what amount of consolidated net income will be reported for 20X5? Consolidated net income d. If Pie had purchased its ownership of Slice on January 1, 20X5, at underlying book value and Pie reported income of $142,750 from its separate operations for 20x5, what amount of consolidated net income would be reported for 20X5? Consolidated net income
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