Question

Pie 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	$	27,400
Accounts Receivable		64,150
Inventory		92,000
Buildings and Equipment (net)		219,000
Cost of Goods Sold		104,500
Depreciation Expense		24,350
Other Operating Expenses		31,460
Dividends Declared		15,100
Accounts Payable				$	33,560
Notes Payable					119,000
Common Stock					90,600
Retained Earnings					127,000
Sales					207,800
Total	$	577,960		$	577,960

If Pie had purchased its ownership of Slice on January 1, 20X5, at underlying book value and Pie reported income of $143,250 from its separate operations for 20X5, what amount of consolidated net income would be reported for 20X5?

Answer 1