Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. thank you!! 5-39 comprehensive problem: major

Thank you!! 5-39 Comprehensive Problem: Majority-Owned Subsidiary Pizza Corporation acquired...

70.2K

Verified Solution

Question

Accounting

Thank you!! image
image
5-39 Comprehensive Problem: Majority-Owned Subsidiary Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $160,000. On that date, the fair value of the noncontrolling interest was $40,000, and Slice reported retained earnings of $50,000 and had $100,000 of common stock outstanding. Pizza has used the equity method in accounting for its investment in Slice. Trial balance data for the two companies on December 31. 20X5, are as follows: Additional Information 1. On the date of combination, the fair value of Slice's depreciable assets was $50,000 more than book value. The accumulated depreciation on these assets was $10,000 on the acquisition date. The differential assigned to depreciable assets should be written off over the following 10-year period. 2. There was $10,000 of intercorporate receivables and payables at the end of 20X5. Required a. Give all journal entries that Pizza recorded during 20X5 related to its investment in Slice. b. Give all consolidation entries needed to prepare consolidated statements for 20X5. c. Prepare a three-part worksheet as of December 31, 20X5. Note that you do not need to prepare the three-part worksheet

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