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Pizza Corporation acquired 75 percent of Slice Corporations voting common stock on January 1, 20X4,...

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Accounting

Pizza Corporation acquired 75 percent of Slice Corporations voting common stock on January 1, 20X4, for $347,000, when the fair value of its net identifiable assets was $466,000 and the fair value of the noncontrolling interest was $119,000. Slice reported common stock outstanding of $120,000 and retained earnings of $220,000. The excess of fair value over book value of Slices net assets was attributed to amortizable assets with a remaining life of 10 years. On December 31, 20X4, Slice sold a building to Pizza and recorded a gain of $24,000. Income assigned to the noncontrolling shareholders in the 20X4 consolidated income statement was $17,500. Required: a. Compute the amount of net income Slice reported for 20X4.

b. Compute the amount reported as consolidated net income if Pizza reported operating income of $239,000 for 20X4.

c. Compute the amount of income assigned to the controlling interest in the 20X4 consolidated income statement.

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