P$5-35$ Comprehensive Problem: Differential Apportionment

Pillow Corporation acquired $80$ percent ownership of Sheet Company on January $1,20$X$7,$ for $$173,000.$ At that date, the fair value of the noncontrolling interest was $$43,250.$ The trial balances for the two companies on December $31,20$X$7,$ included the following amounts:

$\backslash$table$[[$Item$,$Pillow Corporation,Sheet Company$],[$Debit$,$Credit,Debit,Credit$],[$Cash$,$$ $38,000,,$$ $25,000,],[$Accounts Receivable,$50,000,,55,000,],[$Inventory$,240,000,,100,000,],[$Land$,80,000,,20,000,],[$Buildings P$5-35$ Comprehensive Problem: Differential Apportionment

Pillow Corporation acquired $80$ percent ownership of Sheet Company on January $1,20$X$7,$ for $$173,000.$ At that date, the fair value of the noncontrolling interest was $$43,250.$ The trial balances for the two companies on December $31,20$X$7,$ included the following amounts:

$\backslash$table$[[$Item$,$Pillow Corporation,Sheet Company$],[$Debit$,$Credit,Debit,Credit$],[$Cash$,$$ $38,000,,$$ $25,000,],[$Accounts Receivable,$50,000,,55,000,],[$Inventory$,240,000,,100,000,],[$Land$,80,000,,20,000,],[$Buildings