Pizza Corporation acquired 75 percent of Slice Corporation's voting common stock on January 1, 20x4, for...

 

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Pizza Corporation acquired 75 percent of Slice Corporation's voting common stock on January 1, 20x4, for $351,000, when the fair value of its net identifiable assets was $464,000 and the fair value of the noncontrolling interest was $113,000. Slice reported common stock outstanding of $140,000 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, 20X4, Slice sold a building to Pizza and recorded a gain of $22,000. Income assigned to the noncontrolling shareholders in the 20X4 consolidated income statement was $17,600. Required: a. Compute the amount of net income Slice reported for 204. Reported income of Slice b. Compute the amount reported as consolidated net income if Pizza reported operating income of $247,000 for 20X4. Corisolidated net income Next Pizza Corporation acquired 75 percent of Slice Corporation's voting common stock on January 1, 20x4, for $351,000, when the fair value of its net identifiable assets was $464,000 and the fair value of the noncontrolling interest was $113,000. Slice reported common stock outstanding of $140,000 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, 20X4, Slice sold a building to Pizza and recorded a gain of $22,000. Income assigned to the noncontrolling shareholders in the 20X4 consolidated income statement was $17,600. Required: a. Compute the amount of net income Slice reported for 204. Reported income of Slice b. Compute the amount reported as consolidated net income if Pizza reported operating income of $247,000 for 20X4. Corisolidated net income Next

Answer rating: 100% (QA)

a Compute the amount of net income Slice reported for 20X4 1 Acquisition Details Pizza Corporation a... View the full answer