Reference no: EM132489422

xPie Corporation acquired 60 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 40 percent of the total book value of Slice. Slice provided the following trial balance data at December 31, 20X5:

                                                        Debit.                               Credit

Cash                                      $28,000

Account Receivable                   65,650

Inventory                                 90,800

Building and Equipment.              203,000

Cost of Good Sold                     106,000

Depreciation Expense.                     23,550

Other Operating Expenses            31,460

Dividends Declared                    14,200

Account Payable                                                           $32,480

Notes Payable                                                              113,000

Common Stock                                                              85,200

Retained Earnings                                                         131,000

Sales                                                                         201,780

Total                                     $563,460.                     $563,460

Question a) How much did Pie pay to purchase its shares of Slice? (Round your answer to nearest whole dollar amount)

Question 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? (Round your answer to nearest whole dollar amount.)

Question c) If Pie had purchased its ownership of Slice on January 1, 20X5, at underlying book value and Pie reported income of $145,000 from its separate operations for 20X5, what amount of consolidated net income would be reported for 20X5