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. 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.

Trial balance data for Pie and Slice on December $31,20$X$8,$ are as follows:

$----------------------------------------------------------------------------$

$|$ Item $|$ Pie Corporation $|$ Slice Company $|$

$||$ 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 $|425,000||110,000||$

$|$ Wage Expense $|125,000||27,000||$

$|$ Depreciation Expense $|25,000||10,000||$

$|$ Interest Expense $|12,000||4,000||$

$|$ Other Expense $|13,500||5,000||$

$|$ 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 $||12,375|||$

$----------------------------------------------------------------------------$

$|$ Totals $|$ $$931,375|$ $$931,375|$ $$395,000|$ $$395,000|$

$----------------------------------------------------------------------------$

Required:

a$.$ Give all Equity Method Entries that Pie would record from its investment in Slice.

b$.$ Record all consolidation entries needed to prepare a three$-$part consolidation worksheet as of December $31,20$X$8.$

c$.$ Prepare a consolidation worksheet.