1 Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $93,000. At that date, the fair value of the noncontrolling interest was $31,000. The book value of Slice's net assets at acquisition was $91,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $18,200 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 Ple concluded at December 31, 20X8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $3,000. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Pie and Slice on December 31, 20X8, are as follows: Item Pie Corporation Debit Credit Slice Company Debit Credit Cash Accounts Receivable Inventory Land $ 47,500 $ 28,000 77,000 19,000 97,000 32,000 41,000 22,000 Buildings & Equipment Investment in Slice Company Cost of Goods Sold Wage Expense 350,000 152,000 103,185 119,000 104,000 33,000 21,000 Depreciation Expense 23,000 10,000 Interest Expense 10,000 4,000 Other Expenses 11,500 5,000 Dividends Declared 32,000 17,800 Accumulated Depreciation $132,000 $ 40,000 Accounts Payable 30,000 8,000 Wages Payable 9,000 4,000 Notes Payable 187,650 82,800 Common Stock 199,000 60,000 Retained Earnings Sales 101,000 31,000 262,000 189,000 Income from Slice Company 23,535 $944,185 $944,185 $414,800 $414,800 Required: a. Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) PIE CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20X8 Consolidation Entries Pie Corp. Slice Co. DR CR Consolidated Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Less: Impairment loss S 262,000 $ 189,000 S 451,000 (119,000) (104,000) (223,000) (33,000) (21,000) (54,000) (23,000) (10,000) 1,820 (34,820) (10,000) (4,000) (14,000) (11,500) (5,000) (16,500) 15,500 x (15,500) Income from Slice Company 23,535 30,000 12,990 6,525 Consolidated net income S 89,035 S 45,000 $ 47,320 S 12,990 S 99,705 NCI in net income 10,000 4,330 (5,670) Controlling Interest in Net Income S 89,035 S 45,000 $ 57,320 S 17,320 S 94,035 Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Cash Accounts receivable Inventory Land Buildings and equipment Less: Accumulated depreciation Investment in Slice Company Goodwill Total Assets Accounts payable Wages payable Notes payable Common stock Retained earnings NCI in NA of Slice Company Total Liabilities and Equity S 101,000 S 31,000 S 89,035 31,000 S 101,000 (32,000) 45,000 (17,800) 57,320 17,320 94,035 17,800 (32,000) S 158,035 S 58,200 $ 88,320 S 35,120 S 163,035 S 47,500 S 28,000 S 75,500 77,000 19,000 96,000 97,000 32,000 129,000 41,000 22,000 63,000 350,000 152,000 18,200 30,000 490,200 (132,000) (40,000) 30,000 1,820 (143,820) 103,185 84,750 18,435 3,000 3,000 S 583,685 S 213,000 $ 51,200 S 116,570 S 731,315 S 30,000 S 8,000 S 38,000 9,000 4,000 13,000 187,650 82,800 270,450 181,000 60,000 158,035 58,200 60,000 88,320 181,000 35,120 28,250 163,035 28,250 S 565,685 IS 213,000 $ 148,320 S 63,370 S 693,735 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted