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Pizza Corporation acquired 75 percent of Slice Corporation's voting common stock on January 1,204, for $350,000, when the fair value of its net identifiable assets
Pizza Corporation acquired 75 percent of Slice Corporation's voting common stock on January 1,204, for $350,000, when the fair value of its net identifiable assets was $462,000 and the fair value of the noncontrolling interest was $112,000. Slice reported common stock outstanding of $110,000 and retained earnings of $210,000. The excess of fair value over book value of Slice's net assets was attributed to amortizable assets with a remaining life of 10 years. On December 31,204, Slice sold a building to Pizza and recorded a gain of $29,000. Income assigned to the noncontrolling shareholders in the 204 consolidated income statement was $17,800. Required: a. Compute the amount of net income Slice reported for 204. b. Compute the amount reported as consolidated net income if Pizza reported operating income of $234,000 for 204. c. Compute the amount of income assigned to the controlling interest in the 204 consolidated income statement
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