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.

No additional impairment occurred in 20X9.

Trial balance data for Price and Saver on December 31, 20X9, are as follows:

Required

a. Give all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9.

b. Prepare a three-part consolidation worksheet for 20X9 in good form.

c. Prepare a consolidated balance sheet, income statement, and retained earnings statement for 20X9.

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Price Corporation Saver Company Item Debit Cash $ 45,500 Accounts Receivable 85,000 Credit Debit $ 32,000 14,000 Credit Inventory 97,000 Land 50,000 Buildings & Equipment 350,000 Investment in Saver Company 142,500 Cost of Goods Sold 145,000 Wage Experse 35,000 24,000 25,000 150,000 114,000 20,000 Depreciation Expense 25,000 10,000 Interest Expense 12,000 4,000 Other Expenses 23,000 16,000 Dividends Declared 30,000 20,000 Accumulated Depreciation $ 170.000 $ 50,000 Accounts Payable 51,000 15,000 Wages Payable 14,000 6,000 Notes Payable 150,000 50,000 Common Stock 200,000 Retained Earnings 131,000 Salos 290,000 60,000 48,000 200,000 Income from Saver Company 34,000 $1,040,000 $1,040,000 $429,000 $429,000