Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $128,000. At that
Question:
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $128,000. At that date, the fair value of Saver’s buildings and equipment was $20,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price’s management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $2,500.
a. Prepare all consolidating entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9.
b. Prepare a three-part consolidation worksheet for 20X9.
c-1. Prepare a consolidated balance sheet for 20X9.
c-2. Prepare a consolidated income statement for 20X9.
c-3. Prepare a retained earnings statement for 20X9.
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker