P$5-34$ Consolidation Worksheet at End of Second Year of Ownership

This problem is a continuation of P$5-33.$ Pie Corporation acquired $75$ percent of Slice Company's ownership on January $1,$

$20$X$8,$ for $$96,000.$ At that date, the fair value of the noncontrolling interest was $$32,000.$ 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 $31,20$X$8,$ 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 $20$X$9.$

Trial balance data for Pie and Slice on December $31,20$X$9,$ are as follows:

Required

a$.$ Give all consolidation entries needed to prepare a three$-$part consolidation worksheet as of December $31,20$X$9.$

b$.$ Prepare a three$-$part consolidation worksheet for $20$X$9$ in good form.

c$.$ Prepare a consolidated balance sheet, income statement, and retained earnings statement for $20$ X $9.$