Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
On January 1, 20X1. Pepper Company purchased 80% of the common stock of Salt Company. Separate balance sheet data for the companies at the acquisition
On January 1, 20X1. Pepper Company purchased 80% of the common stock of Salt Company. Separate balance sheet data for the companies at the acquisition date (after the acquisition) are given below. Cash Accounts Receivable Inventory Land Plant assets Accum. Depreciation Investment in Salt Total assets Pepper Salt $34,000 $206,000 144,000 26,000 132,000 38.000 68,000 32,000 700,000 300,000 (240,000) (60,000) 392.000 $_1.230.000 S542.000 Accounts payable Capital stock Retained earnings Total liabilities & equities $206,000 $142.000 800,000 300,000 224.000 100.000 5.1.230.000 5542.000 At the date of the acquisition the book values of Salt's net assets were equal to the fair value except for Salt's inventory, which had a fair value of $60,000 Determine below what the consolidated entity balance would be for each of the requested accounts 8 5 13 What amount of total liabilities will be reported? ered out of 20 question Select one: a $206,000 Ob $278.400 C $319,600 d. $348,000 nos 14 What is the reported amount for the non controlling interest? out of 20 Fuguestion Select one: O a $80,000 Ob $84.400 Oc$98,000 Od 5122,500 to 15 What is the amount of consolidated Retained Earnings? yet wed its out of 20 Flag gusto Select one: a $224,000 b. $259,200 C$304,000 od 324,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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