Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $151, 000. On that date, the fair value of the noncontrolling interest was $37, 750, and Slice reported retained earnings of $42, 000 and had $99,000 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, 20X5, are as follows:

Additional Information

On the date of combination, the fair value of Slice's depreciable assets was $47, 750 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 $15, 000 of intercorporate receivables and payables at the end of 20X5.

Required:

a. Prepare all journal entries that Pizza recorded during 20X5 related to its investment in Slice. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare all consolidation entries needed to prepare consolidated statements for 20X5. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

c. Prepare a three-part worksheet as of December 31, 20X5. (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.)

outstanding. Pizza has used the equity method in accounting for its investment in Slice. Trial balance data for the two companies on December 31, 20X5, are as follows: Item Cash & Receivables Inventory Land Buildings & Equipment Investment in Slice Products Company Cost of Goods Sold Depreciation Expense Inventory Losses Dividends Declared Accumulated Depreciation Accounts Payable Notes Payable Common Stock Retained Earnings Sales Income from Slice Products Company Pizza Slice Corporation Products Company Debit Credit Debit Credit $ 86,000 $ 68,000 279,000 99,000 88 , 88,000 504,000 150,000 186,940 113,000 42,000 25,000 15,000 15,000 5,000 44,000 17,200 $ 191,000 $105,000 42,000 15,000 292,560 75,200 283,000 99,000 297,000 89,000 208,000 101,000 27,380 $1,340,940 $1,340, 940 $484,200 $ 484,200 Additional Information 1. On the date of combination, the fair value of Slice's depreciable assets was $47,750 more than book depreciation on these assets was $10,000 on the acquisition date. The differential assigned to deprec off over the following 10-year period. 2. There was $15.000 of intercorporate receivables and payables at the end of 20X5