Pie Corporation acquired 75 percent of Slice Companys 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 Slices net assets at acquisition was $89,000. The book values and fair values of Slices assets and liabilities were equal, except for Slices buildings and equipment, which were worth $17,800 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 $2,800. 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	Pie Corporation	Slice Company
Debit	Credit	Debit	Credit
Cash	$ 54,500		$ 22,000
Accounts Receivable	82,000		13,000
Inventory	102,000		26,000
Land	38,000		16,000
Buildings and Equipment	370,000		160,000
Investment in Slice Company	100,815
Cost of Goods Sold	120,000		105,000
Wage Expense	41,000		25,000
Depreciation Expense	20,000		8,000
Interest Expense	7,000		2,000
Other Expenses	8,500		3,000
Dividends Declared	32,000		17,400
Accumulated Depreciation		$ 135,000		$ 32,000
Accounts Payable		31,000		9,000
Wages Payable		10,000		5,000
Notes Payable		229,950		75,400
Common Stock		191,000		66,000
Retained Earnings		93,000		23,000
Sales		265,000		187,000
Income from Slice Company		20,865
	$ 975,815	$ 975,815	$ 397,400	$ 397,400

Required:

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

1. Record the basic consolidation entry.
2. Record the amortized excess value reclassification entry.
3. Record the excess value (differential) reclassification entry.
4. Record the optional accumulated depreciation consolidation entry.

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

INCLUDE INCOME STATEMENT, STATEMENT OF RETAINED EARNINGS, AND BALANCE SHEET

PIE CORPORATION

SLICE COMPANY

CONSOLIDATION (DEBIT)

CONSOLIDATION (CREDIT)

CONSOLIDATED