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On January 1 , 2 0 X 8 , Pierce Corporation acquired 9 0 percent of Sharp Company's voting stock, at underlying book value. The

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On January 1,20X8, Pierce Corporation acquired 90 percent of Sharp Company's voting stock, at underlying book value. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Sharp at that date. The amount of accumulated depreciation to eliminate is $50,000. Pierce uses the equity method in accounting for its ownership of Sharp. On December 31,20x8, the trial balances of the two companies are as follows:
\table[[,Pierce Company,Sharp Corporation],[,Debit,Credit,Debit,Credit],[Current Assets,$225,500,,$145,000,],[Depreciable Assets,300,000,,225,000,cildared],[\table[[Investment in Sharp],[Corp.]],144,000,,,],[Depreciation Expense,30,000,,25,000,],[Other Expenses,180,000,,85,000,],[Dividends Declared,40,000,,10,000,],[\table[[Accumulated],[Depreciation]],,$150,000,,$100,000
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