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Pea Corporation acquired 80 percent of Split Brewing Company's stock on January 1,20\times 1, at...

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Accounting

Pea Corporation acquired 80 percent of Split Brewing Company's stock on January 1,20\times 1, 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 31,20X4, follow:
\table[[,\table[[PEA CORPORATION],[Balance Sheet],[December 31,204
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