Pizza Corporation acquired $80$ percent ownership of Slice Products Company on January $1,20$X$1,$ for $$160,000.$ On that date, the fair value of the noncontrolling interest was $$40,000,$ and Slice reported retained earnings of $$50,000$ and had $$100,000$ of common stock outstanding. Pizza has used the equity method in accounting for its investment in Slice.

Trial balance data for the two companies on December $31,20$X$5,$ are as follows:

Item Pizza Corporation Slice Products Company

Debit Credit Debit Credit

Cash and Receivables $ $81,000$ $ $65,000$

Inventory $260,00090,000$

Land $80,00080,000$

Buildings and Equipment $500,000150,000$

Investment in Slice Products Company $188,000$

Cost of Goods Sold $120,00050,000$

Depreciation Expense $25,00015,000$

Inventory Losses $15,0005,000$

Dividends Declared $30,00010,000$

Accumulated Depreciation $ $205,000$ $ $105,000$

Accounts Payable $60,00020,000$

Notes Payable $200,00050,000$

Common Stock $300,000100,000$

Retained Earnings $314,00090,000$

Sales $200,000100,000$

Income from Slice Products Company $20,000$

$ $1,299,000$ $ $1,299,000$ $ $465,000$ $ $465,000$

Additional Information

On the date of combination, the fair value of Slice$$s depreciable assets was $$50,000$ more than book value. The accumulated depreciation on these assets was $$10,000$ on the acquisition date. The differential assigned to depreciable assets should be written off over the following $10-$year period.

There was $$10,000$ of intercorporate receivables and payables at the end of $20$X$5.$

Required:

Prepare all journal entries that Pizza recorded during $20$X$5$ related to its investment in Slice.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Prepare all consolidation entries needed to prepare consolidated statements for $20$X$5.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Prepare a three$-$part worksheet as of December $31,20$X$5.$

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.