Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $93,000. At...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $93,000. At that date, the fair value of the noncontrolling interest was $31,000. The book value of Slice's net assets at acquisition was $89,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $17,800 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20X8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $2,600. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Pie and Slice on December 31, 20X8, are as follows: Item Cash Accounts Receivable Inventory Tons Land Duis Buildings and Equipment И Investment in Slice Company Cost of Goods Sold Wage Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings. Sales Income from Slice Company Pie Corporation Debit $ 52,500 88,000 108,000 10%, 000 20,000 39,000 270.000 370,000 06 215 96,315 118,000 41,000 21,000 8,000 9,500 36,000 $ 987,315 Credit $ 133,000 26,000 13,000 257,850 187,000 89,000 266,000 15,465 $ 987,315 Slice Company Debit $ 27,000 18,000 31,000 21,000 166,000 103,000 22,000 10,000 4,000 5,000 16,200 $ 423,200 Credit $ 40,000 12,000 8,000 93,200 66,000 23,000 181,000 $ 423,200 No A B C D Entry 1 2 3 4 Answer is not complete. Common stock Retained earnings Income from Slice Company NCI in Net Income of Slice Company Dividends declared Investment in Slice Company NCI in Net assets of Slice Company Buildings and equipment Goodwill Accounts Depreciation expense Goodwill impairment loss Income from Slice Company NCI in Net Income of Slice Company Accumulated depreciation Buildings and equipment Accumulated depreciation Investment in Slice Company NCI in Net assets of Slice Company ●●●3000 ✓ ✓ ✓ ✓ 33333 33 Debit 66,000✔✓ 23,000 27,750 9,250✔ 1,780✔ 33 17,800✔ 2,600✔ 3 30,000✔ Credit 16,200✔ 82,350✔ 27,450✔ 1,780 30,000 Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $93,000. At that date, the fair value of the noncontrolling interest was $31,000. The book value of Slice's net assets at acquisition was $89,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $17,800 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20X8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $2,600. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Pie and Slice on December 31, 20X8, are as follows: Item Cash Accounts Receivable Inventory Tons Land Duis Buildings and Equipment И Investment in Slice Company Cost of Goods Sold Wage Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings. Sales Income from Slice Company Pie Corporation Debit $ 52,500 88,000 108,000 10%, 000 20,000 39,000 270.000 370,000 06 215 96,315 118,000 41,000 21,000 8,000 9,500 36,000 $ 987,315 Credit $ 133,000 26,000 13,000 257,850 187,000 89,000 266,000 15,465 $ 987,315 Slice Company Debit $ 27,000 18,000 31,000 21,000 166,000 103,000 22,000 10,000 4,000 5,000 16,200 $ 423,200 Credit $ 40,000 12,000 8,000 93,200 66,000 23,000 181,000 $ 423,200 No A B C D Entry 1 2 3 4 Answer is not complete. Common stock Retained earnings Income from Slice Company NCI in Net Income of Slice Company Dividends declared Investment in Slice Company NCI in Net assets of Slice Company Buildings and equipment Goodwill Accounts Depreciation expense Goodwill impairment loss Income from Slice Company NCI in Net Income of Slice Company Accumulated depreciation Buildings and equipment Accumulated depreciation Investment in Slice Company NCI in Net assets of Slice Company ●●●3000 ✓ ✓ ✓ ✓ 33333 33 Debit 66,000✔✓ 23,000 27,750 9,250✔ 1,780✔ 33 17,800✔ 2,600✔ 3 30,000✔ Credit 16,200✔ 82,350✔ 27,450✔ 1,780 30,000
Expert Answer:
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
Students also viewed these accounting questions
-
On January 2, 20X8, Total Corporation acquired 75 percent of Ticken Tie Companys outstanding common stock. In exchange for Ticken Ties stock, Total issued bonds payable with a par value of $500,000...
-
Broadmore Corporation acquired 75 percent of Stem Corporations common stock on January 1, 20X8, for $435,000. At that date, Stem reported common stock outstanding of $300,000 and retained earnings of...
-
Bristle Corporation acquired 75 percent of Silver Corporation's common stock on December 31, 20X8, for $300,000. The fair value of the noncontrolling interest at that date was determined to be...
-
Use the data below to compute for the Gini coefficient. Round off the Gini coefficient to four (4) decimal places. INCOME CLASS (K) FIRST SECOND THIRD FOURTH FIFTH INCOME SHARE (YK) 0.02 0.12 0.28...
-
This and similar cases in succeeding chapters are based on the consolidated financial statements of Amazon.com, Inc. As you work with Amazon.com, Inc., throughout this course, you will develop the...
-
If the Web is one of the greatest sources of information, why must researchers exercise caution when using Web sources?
-
Which item(s) appears as a reconciling item(s) to the bank balance in a bank reconciliation? a. Outstanding checks b. Deposits in transit C. Both a and b d. None of the above
-
According to ightstats.com, American Airlines ights from Dallas to Chicago are on time 80% of the time. Suppose 15 ights are randomly selected, and the number of on-time ights is recorded. (a)...
-
1. What is meant by the phrase "Language influences our view of reality? 2. What images come to mind when you hear someone speaking English with an accent? Do different accents create different...
-
The cash receipts journal of Silver Plastics follows. Silver s general ledger includes the following selected accounts, along with their account numbers: Indicate whether each posting reference (a)...
-
In a 15 TR ammonia refrigeration plant, the condensing temperature is 25C and evaporating temperature -10C. The refrigerant ammonia is sub cooled by 5C before entering through the throttle valve. The...
-
How has GE unified its various brands under one marketing umbrella (or brand).? Based on the brand: Adidas running shoes. You need to answer to the following questions: Q1. Identify the Brand's media...
-
Explain why you chose tosave $2,000 for a vacationover a time frame oftwo years. (Your response should be 2-3 sentences.)Remember, if you use any information or ideas from the webtext, be sure to add...
-
A small object, which has a charge q = 5.7 C and mass m = 2.1 x 105 kg, is placed in a constant electric field. Starting from rest, the object accelerates to a speed of 3.3 x 103 m/s in a time of 1.1...
-
What strategies can be employed to reduce stress and burnout among healthcare professionals during prolonged periods of crisis ?
-
In exchange for a 40% interest in ABC Partnership, Faith contributes land with a basis of $50,000 and FMV of $125,000. There is a mortgage on the land for $30,000 which ABC Partnership assumes....
-
Which of the following statements is not correct for a diver performing a dive on Earth? a. The gravitational attraction of the diver toward Earth and Earth toward the diver are equal in magnitude....
-
The financial statements of Eastern Platinum Limited (Eastplats) are presented in Appendix A at the end of this textbook. Instructions (a) Does East plats report any investments on its statement of...
-
Lance Corporation purchased 75 percent of Avery Companys common stock at underlying book value on January 1, 20X3. At that date, the fair value of the noncontrolling interest was equal to 25 percent...
-
A merger boom comparable to those of the 1960s and mid-1980s occurred in the 1990s and into the new century. The merger activity of the 1960s was associated with increasing stock prices and heavy use...
-
Bennett Corporation owns 60 percent of the stock of Stone Container Company, which it acquired at book value in 20X1. At that date, the fair value of the noncontrolling interest was equal to 40...
-
The post-closing trial balance for Cortez Co. is as follows. The subsidiary ledgers contain the following information: (1) accounts receivable J. Anders \($2,500,\) E Cone \($7,500,\) T. Dudley...
-
Presented below are the purchases and cash oe journals for Reyes Co. for its first month of operations. In addition, the following transactions have not been journalized for July. The cost of all...
-
Presented below are the sales and cash receipts journals for Wyrick Co. for its first month of operations. In addition, the following transactions have not been journalized for February 2008....
Study smarter with the SolutionInn App