2. Accounting
3. please explain this on january 1 20x2 pint corporation acquired...

# Question: please explain this on january 1 20x2 pint corporation acquired...

###### Question details

On January 1, 20X2, Pint Corporation acquired 80 percent of Size Corporation for $200,000 cash. Size reported net income of$25,000 each year and dividends of $5,000 each year for 20X2, 20X3, and 20X4. On January 1, 20X2, Size reported common stock outstanding of$160,000 and retained earnings of $40,000, and the fair value of the noncontrolling interest was$50,000. It held land with a book value of $90,000 and a market value of$100,000, and equipment with a book value of $40,000 and a market value of$48,000 at the date of combination. The remainder of the differential at acquisition was attributable to an increase in the value of patents, which had a remaining useful life of eight years. All depreciable assets held by Size at the date of acquisition had a remaining economic life of eight years. Pint uses the equity method in accounting for its investment in Size.
 $18,000 $10,000
 $32,000 $50,000