Pie Corporation paid $319,500 to acquire 90 percent ownership of Slice Company on April 1, 20X2. At that date, the fair value of the noncontrolling interest was $35,500. On January 1, 20X2, Slice reported these stockholders’ equity balances:

Slice’s operating results and dividend payments for 20X2 were as follows:

Pie uses the equity method in recording its investment in Slice.

Required

a. Prepare the journal entries that Pie recorded in 20X2 for its investment in Slice.

b. Give the worksheet consolidation entries needed at December 31, 20X2, to prepare consolidated financial statements.

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Common Stock $160,000 Additional Paid-In Capital 40,000 Retained Earnings 150,000 Total Stockholders' Equity $350,000