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P5-34 Consolidation Worksheet at End of Second Year of Ownership LO 5-2 Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $120,000. At that date, the fair value of the noncontrolling interest was $40,000. The book value of Slice's net assets at acquisition was $100,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20X8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $2,500. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. No additional impairment occurred in 20X9. Trial balance data for Pie and Slice on December 31, 20X9, are as follows: Slice Company Debit Credit $ 36,000 23,000 33,000 34,000 163,000 Item Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Slice Company Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Sales Income from Slice Co. Pie Corporation Debit Credit $ 76,500 90,000 102,000 57,000 363,000 109, 125 144,000 33,000 23,000 10,000 21,000 39,000 $ 169,000 39,000 8,000 206, 250 190,000 127,875 293,000 34,500 $1,067,625 $1,067, 625 113,000 18,000 8,000 3,000 14,000 29,000 $ 42,000 9,000 5,000 106,000 60,000 48,000 204,000 $ 474,000 $ 474,000 Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits. Entry Accounts Debit Credit 1 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Entry Accounts Debit Credit 3 Record entry Clear entry view consolidation entries Consolidation Worksheet Entries