Mill Corporation acquired 100 percent ownership of Roller Company on January 1, 20X8, for $118,100. At that date, the fair value of Roller's buildings and equipment was $18,000 more than the book value. Accumulated depreciation on this date was $16,000. Buildings and equipment are depreciated on a 5-year basis. Although goodwill is not amortized, Mills management concluded at December 31, 20X8, that goodwill involved in its acquisition of Roller shares had been impaired and the correct carrying value was $2,200. No additional impairment occurred in 20X9. The equity method of consolidation is to be used.

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

	Mill Corporation				Roller Company
Item		Debit		Credit		Debit		Credit
Cash	$	53,500			$	41,000
Accounts Receivable		87,000				18,000
Inventory		99,000				28,000
Land		68,000				29,000
Buildings & Equipment		362,000				158,000
Investment in Roller Co. Stock		132,600
Cost of Goods Sold		145,000				108,000
Wage Expense		32,000				17,000
Depreciation Expense		22,000				8,000
Interest Expense		9,000				2,000
Other Expenses		20,000				13,000
Dividends Declared		31,000				43,400
Accumulated Depreciation			$	159,000			$	32,000
Accounts Payable				35,000				11,000
Wages Payable				10,000				5,000
Notes Payable				130,000				106,400
Common Stock				196,000				57,000
Retained Earnings				175,700				45,000
Sales				298,000				209,000
Income from Subsidiary				57,400
	$	1,061,100	$	1,061,100	$	465,400	$	465,400

Required:

a.

Prepare all consolidating entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) i) record the basic consolidation entry ii) record the amortized excess value reclassification entry iii) record the excess value (differential) reclassification entry iv) record the optional accumulated dpreciation entry

b.

Prepare a three-part consolidation worksheet for 20X9. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

c-1.	Prepare a consolidated balance sheet for 20X9. (Amounts to be deducted should be indicated with a minus sign.)

c-2.	Prepare a consolidated income statement for 20X9.

c-3.	Prepare a retained earnings statement for 20X9.