Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $90,000. At that date, the fair value of the noncontrolling interest was $30,000. The book value of Slice's net assets at acquisition was $87,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $17,400 more than book value. Accumulated depreciation on the buildings and equipment was $27,000 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: Pie Corporation Debit Credit $ 51,500 73,000 93,000 33,000 353,000 98.670 120,000 slice Company Debit Credit $ 28,000 19,000 32,000 22,000 159,000 38,000 25,000 Item Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in slice Company Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Sales Income from Slice Company 12,000 13,500 31,000 105,000 25,000 9,000 3,000 4,000 16,600 $127,000 37,000 9,000 188,550 197,000 99,000 263,000 21,120 $941,670 $ 36,000 8,000 4,000 98,600 54,000 33,000 189,000 $941,670 $ 422,600 $422,600 Required: a. Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. (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 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 Nl of Slice Company Dividends declared Investment in Slice Company NCI in NA of Slice Company 54,000 33,000 24,750 8,250 16,600 b. Prepare a three-part consolidation worksheet for 20X8. (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.) PIE CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20X8 Consolidation Entries Pie Corp. Slice Co. DR CR Consolidated Income Statement Sales $ 260,000 $ 180,000 $ Less: COGS (120,000) (42,000) (21,000) (8,000) (9,500) (105,000) (25,000) (9,000) (3,000) (4,000) 1,720 440,000 (225,000) (67,000) (31,720) (11,000) (13,500) (14,100) Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Less: Impairment loss Income from Slice Company Consolidated net income NCI in net income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance 11,865| 0 13,635 73,135 $ 14,100 25,500 41,320 $ 8,500 $ 34,000 $ $ 77,680 11,865 3,955 (4,545) 73,135 $ 73,135 $ 34,000 $ 49,820 $ 15,820 $ $ 32,000 $ 83,000 83,000 $ 73,135 32,000 $ 34,000 Net income 49,820 15,820 16.800 Less: Dividends declared Ending Balance (30,000) 126,135 $ (16,800) 49,200 $ 73,135 (30,000) 126,135 $ 81,820 $ 32,620 $