Pie Corporation acquired 75 percent of Slice Companys 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 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 $3,200. 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									Slice Company
Item	Debit				Credit					Debit				Credit
Cash		$	51,500								$	22,000
Accounts Receivable			75,000									13,000
Inventory			95,000									26,000
Land			35,000									16,000
Buildings & Equipment			368,000									166,000
Investment in Slice Company			99,165
Cost of Goods Sold			123,000									108,000
Wage Expense			41,000									23,000
Depreciation Expense			23,000									8,000
Interest Expense			10,000									2,000
Other Expenses			11,500									3,000
Dividends Declared			37,000									18,000
Accumulated Depreciation						$	129,000								$	32,000
Accounts Payable							30,000									6,000
Wages Payable							7,000									2,000
Notes Payable							246,500									90,000
Common Stock							184,000									66,000
Retained Earnings							86,000									23,000
Sales							264,000									186,000
Income from Slice Company							22,665
		$	969,165			$	969,165				$	405,000			$	405,000

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.) Record the basic consolidation entry.

Record the amortized excess value reclassification entry.

Record the excess value (differential) reclassification entry.

Record the optional accumulated depreciation consolidation entry.

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 Less: COGS Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Less: Impairment loss Income from Slice Company Consolidated net income $ 0 $ 0 $ 0 $ 0 $ 0 NCI in net income 0 $ 0 $ 0 $ 0 $ 0 $ 0 Controlling Interest in Net Income Statement of Retained Earnings Ending Balance $ 0 $ 0 $ 0 $ 0 $ 0 Balance Sheet Cash Accounts receivable Inventory Land Buildings and equipment Less: Accumulated depreciation Investment in Slice Company Goodwill Total Assets $ 0 $ 0 $ 0 $ 0 $ 0 Accounts payable Wages payable Notes payable Common stock Retained earnings NCI in NA of Slice Company Total Liabilities and Equity $ $ 0 $ 0 $ 0 $ 0 ol