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Punk Corporation purchased 90 percent of Soul Company's voting common shares on January 1, 20X2, at underlying book value. At that date, the fair
Punk Corporation purchased 90 percent of Soul Company's voting common shares on January 1, 20X2, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Soul Company. Punk also purchased $94,000 of 6 percent, five-year bonds directly from Soul on January 1, 20X2, for $98,000. The bonds pay interest annually on December 31. The trial balances of the companies as of December 31, 20X4, are as follows: $ 26,aa 174 , 418 , 245, 125,424 73, 76, aaa 112,2aa 194 , aaa 94 , aea 110,aa 70, aaa 227 , 154, 139, aaa 42,624 $980, 664 $473, 24a $473, 24a Punk Corporation Soul Company Item Cash & Receivables Inventory Buildings Equipment Investment in Soul Company Investment in Soul Company Stock Bonds Debit 95, saa 80, aa 18, aaa 15, 64a 28,ae Credit $136,aaa 4,84a $980,664 Debit 78, aaa 13, 4, 84a 18, aaa Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Current Payables Bonds Payable Bond Premium Common Stock Retained Earnings Sales Interest Income Income from Soul Company Total Credit 52, 64a 1,6aa Stock
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