uestion text Pepper Company owned 60,000 of Salt Companys 100,000 outstanding shares On January 2, 2018, Salt purchased 20,000 of its outstanding shares from the NCI for $70,000 Pepper purchased its shares on January 1, 2016, at which time the fair value of Salt exceeded its book value by $50,000 This difference was due to machinery that was undervalued and had a remaining life of 5 years On December 31, 2017, Salt Company had the following stockholders

Answer rating: 100% (QA)

Assuming Pepper uses the equity method to sccount for its investment in Salt the adjustment ... View the full answer