Pie Corporation acquired 75 percent of Slice Company's common stock on December 31, 20X5, at underlying...

 

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Pie Corporation acquired 75 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 25 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5: Cash Debit $ 27,400 Credit Accounts Receivable Inventory Buildings and Equipment (net) Cost of Goods Sold Depreciation Expense Other Operating Expenses Dividends Declared Accounts Payable Notes Payable Common Stock Retained Earnings Sales Total 64,900 89,600 213,000 104,500 23,950 30,860 15,200 $ 32,240 112,000 91,200 131,000 202,970 $ 569,410 $ 569,410 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 $141,500 from its separate operations for 20X5, what amount of consolidated net income will be reported for 20X5? d. If Pie had purchased its ownership of Slice on January 1, 20X5, at underlying book value and Pie reported income of $141,500 from its separate operations for 20X5, what amount of consolidated net income would be reported for 20X5? Answer is complete but not entirely correct. a. Purchase price b. Noncontrolling interest $ $ c. Consolidated net income $ d. Consolidated net income $ Pie Corporation acquired 75 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 25 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5: Cash Debit $ 27,400 Credit Accounts Receivable Inventory Buildings and Equipment (net) Cost of Goods Sold Depreciation Expense Other Operating Expenses Dividends Declared Accounts Payable Notes Payable Common Stock Retained Earnings Sales Total 64,900 89,600 213,000 104,500 23,950 30,860 15,200 $ 32,240 112,000 91,200 131,000 202,970 $ 569,410 $ 569,410 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 $141,500 from its separate operations for 20X5, what amount of consolidated net income will be reported for 20X5? d. If Pie had purchased its ownership of Slice on January 1, 20X5, at underlying book value and Pie reported income of $141,500 from its separate operations for 20X5, what amount of consolidated net income would be reported for 20X5? Answer is complete but not entirely correct. a. Purchase price b. Noncontrolling interest $ $ c. Consolidated net income $ d. Consolidated net income $