Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $128,000. At that

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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:

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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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Advanced Financial Accounting

ISBN: 9781260165111

12th Edition

Authors: Theodore Christensen, David Cottrell, Cassy Budd

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