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Pie Corporation acquired 65 percent of Slice Company's common stock on December 31, 20X5, at underlying book value. The book values and fair values of

Pie Corporation acquired 65 percent of Slice Company's common stock on December 31, 20X5, at underlying book value. The book values and fair values of Slice's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 35 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5:

Cash 28,000DB

Accounts Receivable64,900 DB

Inventory91,000DB

Buildings and Equipment (net)208,000DB

Cost of Goods Sold105,400DB

Depreciation Expense24,250DB

Other Operating Expenses30,820 DB

Dividends Declared14,600DB

Accounts Payable$33,800 CR

Notes Payable114,000CR

Common Stock87,600 CR

Retained Earnings127,500 CR

Sales204,070CR

Total $566,970DB $566,970CR

a. How much did Pie pay to purchase its shares of Slice?

b. If consolidated financial statements are prepared at December 31, 20X5, what amount will be assigned to the noncontrolling interest in the consolidated balance sheet?

c. If Pie reported income of $144,250 from its separate operations for 20X5, what amount of consolidated net income will be reported for 20X5?

d. If Pie had purchased its ownership of Slice on January 1, 20X5, at underlying book value and Pie reported income of $144,250 from its separate operations for 20X5, what amount of consolidated net income would be reported for 20X5?

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