43) Based on the preceding information, what is Pisa's new ownership interest?

A) 84 percent

B) 55 percent

C) 70 percent

D) 64 percent

Answer: D

44) Based on the preceding information, what is the ending balance in noncontrolling interest in the net assets of Siena?

A) $186,000

B) $418,500

C) $523,125

D) $232,500

Answer: B

45) Based on the preceding information, the elimination entry to prepare the consolidated financial statements on December 31, 20X7 would include a:

A) debit to common stock for $812,500

B) credit to additional paid-in capital for $187,500

C) credit to Investment in Siena Co. for $744,000

D) credit to retained earnings for $350,000

Answer: C

46) Pratt Corporation owns 75 percent of Swan Corporation's outstanding common stock. Swan, in turn, owns 15 percent of Pratt's outstanding common stock. What percent of the dividends paid by Pratt is reported as dividends declared in the consolidated retained earnings statement?

A) None

B) 100 percent

C) 85 percent

D) 75 percent

Answer: C

Please explain how to get these answers!!!

On January 1, 20X7, Pisa Company acquired 80 percent of Siena Company by purchasing 40,000 shares of Siena's common stock. There was no differential related to this transaction. The noncontrolling interest had a fair value equal to 20 percent of book value. The book value of Siena on December 31, 20X7 was as follows: Common Stock ($10 par value) Retained Earnings Total $ 500,000 350,000 $ 850,000 On January 1, 20X8, Pisa purchased an additional 12,500 shares directly from Siena for $25 per share. On January 1, 20X7, Pisa Company acquired 80 percent of Siena Company by purchasing 40,000 shares of Siena's common stock. There was no differential related to this transaction. The noncontrolling interest had a fair value equal to 20 percent of book value. The book value of Siena on December 31, 20X7 was as follows: Common Stock ($10 par value) Retained Earnings Total $ 500,000 350,000 $ 850,000 On January 1, 20X8, Pisa purchased an additional 12,500 shares directly from Siena for $25 per share