Multiple Choice
Pepper Company owned 60,000 of Salt Company's 100,000 outstanding shares. On January 2, 20X3, Salt purchased 20,000 of its outstanding shares from the NCI for $70,000. Pepper purchased its shares on January 1, 20X1, at which time the fair value of Salt exceeded its book value by $50,000. This difference was due to machinery that was undervalued and had a remaining life of 5 years. On December 31, 20X2, Salt Company had the following stockholders' equity: The amount of the adjustment to Pepper's equity would be a:
A) $15,000 increase
B) $3,000 increase
C) $10,500 increase
D) $15,000 decrease
Correct Answer:

Verified
Correct Answer:
Verified
Q7: Company P purchased a 80% interest in
Q8: Apple Inc. owns a 90% interest in
Q10: On January 1, 20X1, Parent Company purchased
Q10: Consolidated statements for X, Y, and Z
Q13: On January 1, 20X1, Parent Company purchased
Q15: On January 1, 20X1, Parent Company purchased
Q17: Company P had 300,000 shares of common
Q18: When a parent purchases a portion of
Q25: Company P owns 80% of the 10,000
Q41: When a parent purchases a portion of