Pie Corporation acquired 60 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 40 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5: Debit Credit Cash $ 27,600 Accounts Receivable 64,900 Inventory 91,600 Buildings and Equipment (net) 216,000 Cost of Goods Sold 103,300 Depreciation Expense 24,450 Other Operating Expenses 31,060 Dividends Declared 15,800 Accounts Payable $ 32,000 Notes Payable 127,000 Common Stock 94,800 Retained Earnings 130,000 Sales 190,910 Total $ 574,710 $ 574,710 Required: How much did Pie pay to purchase its shares of Slice? Note: Round your answer to nearest whole dollar amount. 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. If Pie reported income of $142,250 from its separate operations for 20X5, what amount of consolidated net income will be reported for 20X5?
Pie Corporation acquired 60 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 40 percent of the total book value of Slice. Slice provided the following
| Debit | Credit | |
|---|---|---|
| Cash | $ 27,600 | |
| 64,900 | ||
| Inventory | 91,600 | |
| Buildings and Equipment (net) | 216,000 | |
| Cost of Goods Sold | 103,300 | |
| 24,450 | ||
| Other Operating Expenses | 31,060 | |
| Dividends Declared | 15,800 | |
| Accounts Payable | $ 32,000 | |
| Notes Payable | 127,000 | |
| Common Stock | 94,800 | |
| 130,000 | ||
| Sales | 190,910 | |
| Total | $ 574,710 | $ 574,710 |
Required:
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How much did Pie pay to purchase its shares of Slice?
Note: Round your answer to nearest whole dollar amount.
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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.
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If Pie reported income of $142,250 from its separate operations for 20X5, what amount of consolidated net income will be reported for 20X5?
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If Pie had purchased its ownership of Slice on January 1, 20X5, at underlying book value and Pie reported income of $142,250 from its separate operations for 20X5, what amount of consolidated net income would be reported for 20X5?
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