Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20x1, for $158,000. On that date, the fair value of the noncontrolling interest was $39.500, and Slice reported retained earnings of $48,000 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, 20X5, are as follows: Ites Pizza Corporation slice Products Company Debit Credit $ 78,000 Debit Credit Cash & Receivables $87,000 Inventory 270,000 100,000 Land 85,000 $5,000 Buildings & Equipment 503,000 155,000 Investment in slice Products Company 109,340 Cost of Goods Sold 111,000 48,000 Depreciation Expense 20,000 10,000 Inventory Losses 10,000 5,000 Dividends Declared Accumulated Depreciation Accounts Payable Notes Payable 40,000 17,200 $189,000 $70,000 00,000 11,000 242,000 133,200 Common Stock 293,000 100,000 Retained Earnings Sales Income from slice Products Company 305,000 90,000 210,000 102,000 27,240 $3,324,240 $1,134,240 $506,200 $500,200 Additional Information 1. On the date of combination, the fair value of Slice's depreciable assets was $49,500 more than book value. The accumulated depreciation on these assets was $10,000 on the acquistion date. The differential assigned to depreciable assets should be written off over the following 10-year period. 2. There was $12,000 of intercorporate receivables and payables at the end of 20X5 Income Statement Sales Less COGS Less Depreciation expense Less Inventory losses PIZZA CORPORATION AND SUBSIDIARY Workshest for Consolidated Financial Statements December 31, 20X5 Consolidation Entries Pizza Corp Silce Products Co. DR CR Consolidated Income from Slice Products Company Consolidated net income E S a E NCI in net income Controlling Interest in Net Income $ 0 $ 0 $ 0 $ $ 0 Statement of Retained Earnings Beginning balance Net income Less Dividends declared Ending Balance Balance Sheet Cash and receivables Inventory Land Buildings and equipment Less Accumulated depreciation Investment in Sice Products Company Total Assets Accounts payable Notes payable Common stock Retained eamings NCI 3 NA of Sice Products Company Total Liabilities and Equity $ 5 S O $ S