P5-33 Consolidation Worksheet at End of Second Year of Ownership This problem is a continuation of P5-32. Power Corporation acquired 75 percent of Best Com- pany's ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncon- trolling interest was $32,000. The book value of Best's net assets at acquisition was $100,000. The book values and fair values of Best's assets and liabilities were equal, except for Best's buildings and equipment, which were worth $20,000 more than book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Power concluded at December 31, 20X8, that goodwill from its purchase of Best shares had been impaired and the correct carrying amount was $2,500. Goodwill and goodwill impairment were assigned proportion- ately to the controlling and noncontrolling shareholders. No additional impairment occurred in 20X9. lanced lyGuide com Consolidation of Less-than-Wholly-Owned Subsidiaries Acquired at More than Book Value Trial balance data for Power and Best on December 31, 20X9, are as follows: Best Company Debit Credit Item $ 32,000 14,000 24,000 25,000 150,000 Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Best Co. Stock Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Sales Income from Subsidiary Power Corporation Debit Credit $ 68,500 85,000 97,000 50,000 350,000 106,875 145,000 35,000 25,000 12,000 23,000 30,000 $ 170,000 51,000 14,000 150,000 200,000 126,875 290,000 25,500 $1,027,375 $1,027,375 114,000 20,000 10,000 4,000 16,000 20,000 $ 50,000 15,000 6,000 50,000 60,000 48,000 200,000 $429,000 $429,000 Required a. Give all elimination entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9. b. Prepare a three-part consolidation worksheet for 20X9 in good form. c. Prepare a consolidated balance sheet, income statement, and retained earnings statement for 20X9. P5-33 Consolidation Worksheet at End of Second Year of Ownership This problem is a continuation of P5-32. Power Corporation acquired 75 percent of Best Com- pany's ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncon- trolling interest was $32,000. The book value of Best's net assets at acquisition was $100,000. The book values and fair values of Best's assets and liabilities were equal, except for Best's buildings and equipment, which were worth $20,000 more than book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Power concluded at December 31, 20X8, that goodwill from its purchase of Best shares had been impaired and the correct carrying amount was $2,500. Goodwill and goodwill impairment were assigned proportion- ately to the controlling and noncontrolling shareholders. No additional impairment occurred in 20X9. lanced lyGuide com Consolidation of Less-than-Wholly-Owned Subsidiaries Acquired at More than Book Value Trial balance data for Power and Best on December 31, 20X9, are as follows: Best Company Debit Credit Item $ 32,000 14,000 24,000 25,000 150,000 Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Best Co. Stock Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Sales Income from Subsidiary Power Corporation Debit Credit $ 68,500 85,000 97,000 50,000 350,000 106,875 145,000 35,000 25,000 12,000 23,000 30,000 $ 170,000 51,000 14,000 150,000 200,000 126,875 290,000 25,500 $1,027,375 $1,027,375 114,000 20,000 10,000 4,000 16,000 20,000 $ 50,000 15,000 6,000 50,000 60,000 48,000 200,000 $429,000 $429,000 Required a. Give all elimination entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9. b. Prepare a three-part consolidation worksheet for 20X9 in good form. c. Prepare a consolidated balance sheet, income statement, and retained earnings statement for 20X9