Pie Corporation acquired 75 percent of Slice Companys 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 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. Trial balance data for Pie and Slice on December 31, 20X8, are as follows:

AMORTIZATION OF EXCESS ACQUISITION PRICE IS 5625. HOW DO YOU GET THAT NUMBER?

Pie Corporation Debit Slice Compan Debit Credit Item Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Slice Company Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expense:s Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Sales Income from Slice Company Credit $ 21,000 12,000 25,000 15,000 150,000 $ 47,500 70,000 90,000 30,000 350,000 96,375 125,000 42,000 25,000 12,000 13,500 30,000 110,000 27,000 10,000 4,000 5,000 16,000 $145,000 45,000 17,000 150,000 200,000 102,000 260,000 12,375 $931,375 $ 40,000 16,000 9,000 50,000 60,000 40,000 180,000 $931,375 $395,000 $395,000