P7-35 Intercompany Sale of Land and Depreciable Asset LO 7-3, 7-6 Putt Corporation acquired 70 percent of Slice Company's voting common stock on January 1, 2003, for $158,900 Slice reported common stock outstanding of $100,000 and retained earnings of $85,000 The fair value of the noncontrolling interest was $68.100 at the date of acquisition Buildings and equipment held by Slice had a fair value $25,000 higher than book value The remainder of the differential was assigned to a copyright held by Slice. Buildings and equipment had a 10-year remaining life and the copyright had a 5- year life at the date of acquisition Tial balances for Putt and Sace on December 31, 2005, are as follows:- Cash Accounts Receivable Cont of preciation Other Expens Holdends declared Accumulated Other Payables Anal Paid Capital Sales CHELT $ 15,858 $5,000 Debly $58,000 Credit 10,000 15,000 157,438 130,00 24, 20,000 150,000 2,250 Put old and had purchased for $21,000 Sce on September 20, 2004 for $32.000 Sice plans to use the land for future pla expansion On January 1, 20x5 Since sol eauomet to Pue to $91600 Sace purchased the equoment on January 1.20x3 Putt sold land it had purchased for $21,000 to Slice on September 20, 20X4, for $32,000 Slice plans to use the land for future plant expansion. On January 1, 20X5, Slice sold equipment to Putt for $91,600, Slice purchased the equipment on January 1, 20X3, for $100,000 and depreciated it on a 10-year basis, including an estimated residual value of $10,000, The residual value and estimated economic life of the equipment remained unchanged as a result of the transfer, and both companies use straight-line depreciation Assume Putt uses the fully adjusted equity method Required: c. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements at December 31, 20x5, for Putt and Slice of no entry is required for a transection/event, select "No journal entry required" in the first account field.) view transaction list A Record the basic consolidation entry. Record the amortized excess value reclassification entry c Record the excess value (differential) reclassification entry o Record the entry to eliminate the gain on the sale of land. Record the entry to eliminate the gain on equipment and to correct the asset's basis. Record the entry to adjust Accumulated Depreciation Note i journal entry has been entered Record untry Clear entry X B Credit