Mill Corporation acquired 100 percent ownership of Roller Company on January 1, 20X8, for $128,000. At that date, the fair value of Rollers 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, 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 $2,500.

Trial balance data for Mill and Roller on December 31, 20X8, are as follows:

		Mill Corporation								Roller Company
Item	Debit				Credit				Debit					Credit
Cash		$	19,500							$	21,000
Accounts Receivable			70,000								12,000
Inventory			90,000								25,000
Land			30,000								15,000
Buildings & Equipment			350,000								150,000
Investment in Roller Co. Stock			128,500
Cost of Goods Sold			125,000								110,000
Wage Expense			42,000								27,000
Depreciation Expense			25,000								10,000
Interest Expense			12,000								4,000
Other Expenses			13,500								5,000
Dividends Declared			30,000								16,000
Accumulated Depreciation						$	145,000							$	40,000
Accounts Payable							45,000								16,000
Wages Payable							17,000								9,000
Notes Payable							150,000								50,000
Common Stock							200,000								60,000
Retained Earnings							102,000								40,000
Sales							260,000								180,000
Income from Subsidiary							16,500
		$	935,500			$	935,500			$	395,000			$	395,000

Required:

a.

Prepare the following consolidating 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.)

Consolidation Worksheet Entries

Record the basic consolidation entry.

Record the amortized excess value reclassification entry.

Record the excess value (differential) reclassification entry.

Record the optional accumulated depreciation consolidation entry.

Event

Accounts

Debit

Credit

1

*Enter debits before credits

b.

Prepare a three-part consolidation worksheet for 20X8. (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.)