Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $93,000. At that date, the fair value of the noncontrolling interest was $31,000. The book value of Slice's net assets at acquisition was $90,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $18,000 more than book value. Accumulated depreciation on the buildings and equipment was $24,000 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: Item Cash Accounts Receivable Pie Corporation Debit Slice Company Credit Debit Credit $ 50,500 $ 23,000 88,000 14,000 Inventory 108,000 27,000 Land 46,000 17,000 Buildings and Equipment 359,000 162,000 Investment in Slice Company 104,325 Cost of Goods Sold 120,000 105,000 Wage Expense 40,000 23,000 Depreciation Expense 21,000 8,000 Interest Expense 8,000 2,000 Other Expenses 9,500 3,000 Dividends Declared 31,000 17,200 Accumulated Depreciation $ 141,000 Accounts Payable 44,000 $ 32,000 10,000 Wages Payable 11,000 6,000 Notes Payable 207,100 75,200 Common Stock 196,000 54,000 Retained Earnings 98,000 36,000 Sales 264,000 188,000 Income from Slice Company $ 985,325 24,225 $ 985,325 $ 401,200 $ 401,200 Required: 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. Required: 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 1 Accounts Debit Credit Record entry Clear entry view consolidation entries Required: 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 amortized excess value reclassification entry. Note: Enter debits before credits. Entry 2 Accounts Debit Credit Record entry Clear entry view consolidation entries > Required: 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 Record the excess value (differential) reclassification entry. Note: Enter debits before credits. Entry 3 Accounts Debit Credit Record entry Clear entry view consolidation entries Required: 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 optional accumulated depreciation consolidation entry. Note: Enter debits before credits. Entry 4 Accounts Debit Credit 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 PIE CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20X8 Pie Corporation Slice Company Consolidation Entries Consolidated Debit Credit Income from Slice Company Consolidated net income $ 0 $ 0 $ 0 $ 0 $ 0 NCI in net income 0 Controlling Interest in Net Income $ 0 $ 0 $ 0 $ 0 $ 0 Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet $ $ 0 $ 0 $ $ 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 $ 0 $ 0 $ 0 $ 0 $ 0 Retained earnings NCI in NA of Slice Company Total Liabilities and Equity $ 0 $ 0 $ 0 $ 0 $