1. P533Consolidation Worksheet at End of First Year of Ownership LO 52

Pie Corporation acquired 75 percent of Slice Companys ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The bookPage 230 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, 20X8, 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.

Trial balance data for Pie and Slice on December 31, 20X8, are as follows:

	Pie Corporation			Slice Company
Item	Debit	Credit		Debit	Credit
Cash	$ 47,500			$ 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 Slice Company	96,375
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 Slice Company		12,375
	$931,375	$931,375		$395,000	$395,000

Required

1. Give all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8.

2. Prepare a three-part consolidation worksheet for 20X8 in good form.