Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, 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 $92,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $18,400 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 $3,100. 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 55,500 28,000 Accounts Receivable 75,000 19,000 Inventory 95,000 32,000 Land 31,000 22,000 Buildings and 352,000 155,000 Equipment Investment in Slice 100,845 Company Cost of Goods Sold 116,000 101,000 Wage Expense 38,000 22,000 Depreciation Expense 24,000 10,000 Interest Expense 11,000 4,000 Other Expenses 12,500 5,000 Dividends Declared 35,000 15,200 Accumulated $ $ Depreciation 139,000 40,000 Accounts Payable 34,000 10,000 Wages Payable 11,000 6,000 Notes Payable Common Stock Retained Earnings Sales Income from Slice Company 186,600 85,200 198,000 60,000 100,000 32,000 261,000 180,000 16,245 $ $ $ 945,845 945,845 413,200 413,200 a. Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. view transaction list Consolidation Worksheet Entries < A B C D Record the basic consolidation entry. Note: Enter debits before credits. Entry Accounts Debit Credit 1 Common stock Retained earnings Income from Slice Company NCI in Net Income of Slice Company Dividends declared Investment in Slice Company NCI in Net assets of Slice Company Record entry Clear entry view consolidation entries Consolidation Worksheet Entries A B C D Record the amortized excess value reclassification entry. Note: Enter debits before credits. Entry 2 Accounts Debit Credit Record entry Clear entry view consolidation entries Consolidation Worksheet Entries A B D Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Entry 3 Accounts Debit Credit Record entry Clear entry view consolidation entries Consolidation Worksheet Entries A B D Record the optional accumulated depreciation consolidation entry. Note: Enter debits before credits. Entry Accounts Debit Credit 4 Accumulated depreciation Buildings and equipment Record entry Clear entry view consolidation entries b. Prepare a three-part consolidation worksheet for 20X8. Note: 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. Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Less: Impairment loss Answer is not complete. PIE CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20X8 Pie Corporation Slice Company Consolidation Entries Consolidated Debit Credit $ 261,000 180,000 (116,000) (101,000) (38,000) (22,000) (24,000) (10,000) (11,000) (4,000) (12,500) (5,000) S 441,000 (217,000) (60,000) (34,000) (15,000) (17,500) Income from Slice Company 16,245 16.245 Consolidated net income $ 75,745 $ 38,000 S 0 S 0 $ 113,745 NCI in net income 0 Controlling Interest in Net Income $ 75,745 S 38,000 S 0 S 0 S 113,745 Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Cash Accounts receivable Inventory Land Buildings and equipment Less: Accumulated depreciation Investment in Slice Company Goodwill Total Assets Accounts payable Wages payable Notes payable Common stock Retained earnings NCI in NA of Slice Company $ 100,000 75,745 (35,000) S 32,000 S 132,000 38,000 (15,200) 113,745 (50,200) $ 140,745 S 54,800 S 0 S 0 $ 195.545 $ 55,500 75,000 S 28,000 19,000 95,000 32,000 31,000 22,000 352,000 (139,000) 100,845 155,000 (40,000) S 83,500 94,000 127,000 53,000 507,000 (179,000) 100,845 $ 570,345 S 216,000 S 0 S 786,345 $ 34,000 S 10,000 S 44,000 11,000 186,600 6,000 85,200 198,000 140,745 60,000 54,800 17.000 271,800 258,000 195.545 Total Liabilities and Equity $ 570,345 S 216,000 0 0 786,345