Question
Pie Corporation acquired 70 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 70 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 30 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5:
Debit Credit Cash $ 27,300 Accounts Receivable 64,300 Inventory 89,400 Buildings and Equipment (net) 210,000 Cost of Goods Sold 104,800 Depreciation Expense 24,350 Other Operating Expenses 31,420 Dividends Declared 14,600 Accounts Payable $ 33,800 Notes Payable 116,000 Common Stock 87,600 Retained Earnings 130,000 Sales 198,770 Total $ 566,170 $ 566,170
Required:
a. How much did Pie pay to purchase its shares of Slice? (Round your answer to nearest whole dollar amount.)
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