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Attached is the question along with the information needed. Thank you. Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1,
Attached is the question along with the information needed. Thank you.
Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $148,000. On that date, the fair value of the noncontrolling interest was $37,000, and Slice reported retained earnings of $45,000 and had $93,000 of common stock outstanding. Pizza has used the equity method in accounting for its investment in Slice. Trial balance data for the two companies on December 31, 20X5, are as follows: $ 68, eee 87 , eee 277 , eee 104, eee 86, eee 86, eee ses, eee 15e, eee 178, 32e 111, eee 45, eee 22, eee 46, eee 23, see $ 84, eee 196, eee 215,48e leg , see 3ee, eee 93, eee 314, eee 83, eee 2 e8, eee leg , eee Pizza Corporation Item Cash & Receivables Inventory Buildings & Equipment Investment in Slice Products Cost of Goods Sold Depreciation Expense Inventory Losses Dividends Declared Accumulated Depreciation Company Debit 12 , eee $1, 324, 32e Credit Slice Products Company Debit Credit 12 , eee 5, eee Accounts Payable Notes Payable Common Stock Retained Earnings Sales Income from Slice Products Company 57 , eee 15, eee 33, 84e $1, 324, 32e $493, see $493, see Additional Information 1. On the date of combination, the fair value of Slice's depreciable assets was $47,000 more than book value. The accumulated depreciation on these assets was $10,000 on the acquisition date. The differential assigned to depreciable assets should be written off over the following 10-year period. 2. There was $10,000 of intercorporate receivables and payables at the end of 20X5.
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