On January 1, 20x8, Pierce Corporation acquired 90 percent of Sharp Company's voting stock, at underlying book value. The fair value of the noncontrolling Interest was equal to 10 percent of the book value of Sharp at that date. The amount of accumulated depreciation to eliminate is $50,000. Pierce uses the equity method in accounting for its ownership of Sharp. On December 31, 20x9, the trial balances of the two companies are as follows: Sharp Corporation Debit Credit $145,000 225,000 Pierce Company Debit Credit $225,500 300,000 144,000 30,000 180,000 40,000 $150,000 45,000 75,000 100,000 282,500 253,500 13,500 $919,500 $919,500 Current Assets Depreciable Assets Investment in Sharp Corp. Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Sharp 25,000 85,000 10,000 $100,000 20,000 90,000 75,000 80,000 125,000 $ 490,000 $ 490,000 Required: 1) Give all consolidating entries required on December 31, 20x8, to prepare consolidated financial statements. 2) Prepare a three-part consolidation worksheet as of December 31, 20x8. Essay Toolbar navigation B I y s E 3 a H !!! A. On January 1, 20x8, Pierce Corporation acquired 90 percent of Sharp Company's voting stock, at underlying book value. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Sharp at that date. The amount of accumulated depreciation to eliminate is $50,000. Pierce uses the equity method in accounting for its ownership of Sharp. On December 31, 20x9, the trial balances of the two companies are as follows: Pierce Company Sharp Corporation Debit Credit Debit Credit Current Assets $225,500 $145,000 Depreciable Assets 300,000 I 225,000 Investment in Sharp Corp. 144,000 Depreciation Expense 30,000 25,000 Other Expenses 180,000 85,000 Dividends Declared 40,000 10,000 Accumulated Depreciation $150,000 $100,000 Current Liabilities 45,000 20,000 Long-Term Debt 75,000 90,000 Common Stock 100,000 75,000 Retained Earnings 282,500 80,000 Sales 253,500 125,000 Income from Sharp 13,500 $919,500 $919,500 $ 490,000 $ 490,000 Required: 5:14 1) Glve all consolidating entries required on December 31, 20X8, to prepare consolidated financial statements. 2) Prepare a three-part consolidation worksheet as of December 31, 20x8. On January 1, 20x8, Pierce Corporation acquired 90 percent of Sharp Company's voting stock, at underlying book value. The fair value of the noncontrolling Interest was equal to 10 percent of the book value of Sharp at that date. The amount of accumulated depreciation to eliminate is $50,000. Pierce uses the equity method in accounting for its ownership of Sharp. On December 31, 20x9, the trial balances of the two companies are as follows: Sharp Corporation Debit Credit $145,000 225,000 Pierce Company Debit Credit $225,500 300,000 144,000 30,000 180,000 40,000 $150,000 45,000 75,000 100,000 282,500 253,500 13,500 $919,500 $919,500 Current Assets Depreciable Assets Investment in Sharp Corp. Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Sharp 25,000 85,000 10,000 $100,000 20,000 90,000 75,000 80,000 125,000 $ 490,000 $ 490,000 Required: 1) Give all consolidating entries required on December 31, 20x8, to prepare consolidated financial statements. 2) Prepare a three-part consolidation worksheet as of December 31, 20x8. Essay Toolbar navigation B I y s E 3 a H !!! A. On January 1, 20x8, Pierce Corporation acquired 90 percent of Sharp Company's voting stock, at underlying book value. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Sharp at that date. The amount of accumulated depreciation to eliminate is $50,000. Pierce uses the equity method in accounting for its ownership of Sharp. On December 31, 20x9, the trial balances of the two companies are as follows: Pierce Company Sharp Corporation Debit Credit Debit Credit Current Assets $225,500 $145,000 Depreciable Assets 300,000 I 225,000 Investment in Sharp Corp. 144,000 Depreciation Expense 30,000 25,000 Other Expenses 180,000 85,000 Dividends Declared 40,000 10,000 Accumulated Depreciation $150,000 $100,000 Current Liabilities 45,000 20,000 Long-Term Debt 75,000 90,000 Common Stock 100,000 75,000 Retained Earnings 282,500 80,000 Sales 253,500 125,000 Income from Sharp 13,500 $919,500 $919,500 $ 490,000 $ 490,000 Required: 5:14 1) Glve all consolidating entries required on December 31, 20X8, to prepare consolidated financial statements. 2) Prepare a three-part consolidation worksheet as of December 31, 20x8