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Pie Corporation acquired 75 percent of Slice Companys ownership on January 1, 20X8, for $99,000. At that date, the fair value of the noncontrolling interest

Pie Corporation acquired 75 percent of Slice Companys ownership on January 1, 20X8, for $99,000. At that date, the fair value of the noncontrolling interest was $33,000. The book value of Slices net assets at acquisition was $100,000. The book values and fair values of Slices assets and liabilities were equal, except for Slices 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. No additional impairment occurred in 20X9. Trial balance data for Pie and Slice on December 31, 20X9, are as follows:

Pie Corporation Slice Company
Item Debit Credit Debit Credit
Cash $ 72,500 $ 38,000
Accounts Receivable 90,000 19,000
Inventory 102,000 29,000
Land 66,000 30,000
Buildings & Equipment 366,000 152,000
Investment in Slice Company 114,375
Cost of Goods Sold 141,000 112,000
Wage Expense 33,000 18,000
Depreciation Expense 23,000 8,000
Interest Expense 10,000 3,000
Other Expenses 21,000 14,000
Dividends Declared 37,000 27,000
Accumulated Depreciation $ 161,000 $ 39,000
Accounts Payable 40,000 11,000
Wages Payable 10,000 5,000
Notes Payable 219,750 79,000
Common Stock 182,000 60,000
Retained Earnings 127,875 48,000
Sales 297,000 208,000
Income from Slice Co. 38,250
$ 1,075,875 $ 1,075,875 $ 450,000 $ 450,000

Required: a. Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the basic consolidation entry.

Record the amortized excess value reclassification entry.

Record the excess value (differential) reclassification entry.

Record the optional accumulated depreciation consolidation entry.

b. Prepare a three-part consolidation worksheet for 20X9. (Round your answers to the nearest dollar amount. Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

c. Prepare a consolidated balance sheet, income statement, and retained earnings statement for 20X9. (Round your answers to the nearest dollar amount. Amounts to be deducted should be indicated with a minus sign.)

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