Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $145,000. On that date, the fair value of the noncontrolling interest was $36,250, and Slice reported retained earnings of $43,000 and had $92,000 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: Pizza Corporation Slice Products Company Item Debit Credit Debit Credit Cash & Receivables $ 82,000 $ 80,000 Inventory 270,000 108,000 Land 89,000 89,000 Buildings & Equipment 513,000 165,000 Investment in Slice Products Company 174,820 Cost of Goods Sold 118,000 43,000 Depreciation Expense 25,000 15,000 Inventory Losses 15,000 6,000 Dividends Declared 38,000 15,600 Accumulated Depreciation $ 194,000 $ 105,000 Accounts Payable 47,000 14,000 Notes Payable 245,920 127,600 Common Stock 296,000 92,000 Retained Earnings 310,000 82,000 Sales 206,000 101,000 Income from Slice Products Company 25,900 $1,324,820 $ 1,324,820 $521,600 $ 521,600 Additional Information 1. On the date of combination, the fair value of Slice's depreciable assets was $46,250 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. 2. There was $11,000 of intercorporate receivables and payables at the end of 20X5. Required: b. Prepare all consolidation entries needed to prepare consolidated statements for 20X5.