Reference no: EM132532224

Question - Pie Corporation acquired 85 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 15 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5:

Debit Credit Cash$28,200 Accounts Receivable 65,500 Inventory 91,200 Buildings and Equipment (net) 211,000 Cost of Goods Sold 104,500 Depreciation Expense 24,500 Other Operating Expenses 31,100 Dividends Declared 14,000 Accounts Payable $32,120 Notes Payable 118,000 Common Stock 84,000 Retained Earnings 131,500 Sales 204,380 Total$570,000 $570,000

Required -

How much did Pie pay to purchase its shares of Slice?

If consolidated financial statements are prepared at December 31, 20X5, what amount will be assigned to the noncontrolling interest in the consolidated balance sheet?

If Pie reported income of $142,500 from its separate operations for 20X5, what amount of consolidated net income will be reported for 20X5?

If Pie had purchased its ownership of Slice on January 1, 20X5, at underlying book value and Pie reported income of $142,500 from its separate operations for 20X5, what amount of consolidated net income would be reported for 20X5?