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Pail Corporation acquired 80 percent of the common shares and 70 percent of the preferred shares of Shovel Corporation at underlying book value on January
Pail Corporation acquired 80 percent of the common shares and 70 percent of the preferred shares of Shovel Corporation at underlying book value on January 1, 20X9. At that date, the fair value of the noncontrolling interest in Shovel's common stock was equal to 20 percent of the book value of its common stock. Shovel's balance sheet at the time of acquisition contained the following balances:
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