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:

a. Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8.

b. Prepare a three-part consolidation worksheet for 20X8.

PIE CORPORATION AND SUBSIDIARY
Worksheet for Consolidated Financial Statements
December 31, 20X9
			Consolidation Entries
	Pie Corp.	Slice Co.	DR	CR	Consolidated
Income Statement
Sales
Less: COGS
Less: Wage expense
Less: Depreciation expense
Less: Interest expense
Less: Other expenses
Income from Slice Company
Consolidated net income
NCI in net income
Controlling Interest in Net Income
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
Total Liabilities and Equity

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