Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pie Corporation acquired 8 5 percent of Slice Company's common stock on December 3 1 , 2 0 5 , at underlying book value. The

image text in transcribed
Pie Corporation acquired 85 percent of Slice Company's common stock on December 31,205, 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 15
percent of the total book value of Slice. Slice provided the following trial balance data at December 31,20X5:
Required:
a. How much did Pie pay to purchase its shares of Slice?
Note: Round your answer to nearest whole dollar amount.
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?
Note: Round your answer to nearest whole dollar amount.
c. If Pie reported income of $143,000 from its separate operations for 205, what amount of consolidated net income will be reported
for 205?
d. If Pie had purchased its ownership of Slice on January 1,205, at underlying book value and Pie reported income of $143,000 from
its separate operations for 205, what amount of consolidated net income would be reported for 205?
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting the basis for business decisions

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

18th edition

125969240X, 978-1259692406

More Books

Students also viewed these Accounting questions