Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. how to solve pea corporation acquired 80 percen

How to solve Pea Corporation acquired 80 percent of Split Brewing Company's...

70.2K

Verified Solution

Question

Accounting

How to solve
Pea Corporation acquired 80 percent of Split Brewing Company's stock on January 1,20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of Split's book value. On January 1,20X1, Split issued $300,000 par value, 8 percent, 10-year bonds to Malt Company for $360,000. Pea subsequently purchased $100,000 of the bonds from Malt for $102,000 on January 1,20X3. Interest is paid semiannually on January 1 and July 1.
Summarized balance sheets for Pea and Split as of December 31,204, follow:
\table[[\table[[PEA CORPORATION],[Balance Sheet],[December 31,20X4]]],[Cash and Receivables,$122,500,Accounts Payable,$40,000
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Algebra
1.2K views

20 1 point Suppose a random sample of 84 men has a mean foot length...

Psychology
1.2K views

How do your biological , physiological, and societal system influence the way you make decisions

Electrical Engineering
1.2K views

What is an inherent problem to watch out for when adding transient suppressors to data lines?

Biology
1.2K views

Which of the following is an application based threat O Spyware O Adobe Flash Player...

Physics
1.2K views

27 If in limbs of venturimeter height difference is 20 cm then find velocity of...

Geometry
1.2K views

A line segment has endpoints of (-2,4) and (5,-3). Find its length and midpoint

Calculus
1.2K views

Score 3 4 3 4 answered Question 3 A rectangular field whose area is 19000...

Algebra
1.2K views

Given a table equation or written description of a linear function graph that function and...

Accounting
1.2K views

Are the subscriber and the patient the same person? What is the code for...

Accounting
1.2K views

The following information is available for Altec Corporation's merchandise inventory transactions...

Accounting
1.2K views

During its first year of operation Mazer Manufacturing Company produced 2,000 units of inventory and...

Accounting
1.2K views

Discuss the misrepresentation of financial information to the public, and answer the following questions: What...