Mill Corporation acquired 100 percent ownership of Roller Company on January 1, 20X8, for $128,000. At that date, the fair value of Roller's buildings and equipment was $20,000 more than book value. Accumulated depreciation on this date was $30,000. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Mill concluded at December 31, 20X8 that goodwill involved in its acquisition of Roller shares had been impaired and the correct carrying value was $2,500. No additional impairment occurred in 20X9.

Trial balance data for Mill and Roller on December 31, 20X9, are as follows:

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

2. Prepare a three-part consolidation worksheet for 20X9.

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

Item Cash Accounts Receivable Inventory Land Buildings Equipment Investment in Roller Cost of Goods Sold Wage Expense and Depreciation Expense Interest Expense Mill Corporation Debit $ 45,500 S 85,000 S 97,000 S 50,000 S 350,000 S 142,500 S 145,000 S 35,000 S 25,000 S Credit Roller Company Debit S 32,000 S 14,000 S 24,000 S 25,000 S 150,000 S 114,000 S 20,000 S 10,000 $ Credit Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Sales Income from Subsidiary 12,000 S 23,000 S 30,000 S 1,040,000 S 170,000 S 51,000 $ 14,000 S 150,000 S 200,000 $ 131,000 S 290,000 S 34,000 S 1,040,000 4,000 S 16,000 S 20,000 S 50,000 S 15,000 S 6,000 S 50,000 S 60,000 S 48,000 S 200,000 $ $ 429,000 429,000