Answered step by step
Verified Expert Solution
Question
1 Approved Answer
10 Ple Corporation acquired 65 percent of Slice Company's common stock on December 31, 20X5, at underlying book value. The book values and fair
10 Ple Corporation acquired 65 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 35 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5: points Cash Debit $28,000 Credit Accounts Receivable 65,050 Inventory 88,200 Buildings and Equipment (net) 218,000 eBook Cost of Goods Sold 104,200 Depreciation Expense 24,350 30,620 Print References Other Operating Expenses Dividends Declared Accounts Payable Notes Payable Common Stock Betained Earnings Sales Total 15,200 $32,240 124,000 $573,620 91,200 126,000 200, 190 $573,620 Required: a. How much did Pie pay to purchase its shares of Slice? Note: Round your answer to nearest whole dollar amount. 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? Note: Round your answer to nearest whole dollar amount. c. If Pie reported income of $144,250 from its separate operations for 20X5, what amount of consolidated net income will be reported for 20X5? d. If Pie had purchased its ownership of Slice on January 1, 20X5, at underlying book value and Pie reported income of $144,250 from its separate operations for 20X5, what amount of consolidated net income would be reported for 20X5? a. Purchase price b. Noncontrolling interest c. Consolidated net income d. Consolidated net income
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started