Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $152,000. On that date, the fair value of the noncontrolling interest was $38,000, and Slice reported retained earnings of $45,000 and had $97,000 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 $84,000 $75,000

Inventory $272,000 100,000

Land $82,000 $82,000

Buildings & Equipment $507,000 160,000

Investment in Slice Products Company 183,360

Cost of Goods Sold 116,000 45,000

Depreciation Expense 23,000 13,000

Inventory Losses 13,000 6,000

Dividends Declared 38,000 14,800

Accumulated Depreciation $197,000 $91,000

Accounts Payable 41,000 18,000

Notes Payable 254,400 102,800

Common Stock 292,000 97,000

Retained Earnings 306,000 87,000

Sales 203,000 100,000

Income from Slice Products Company 24,960 $1,318,360 $1,318,360 $495,800 $495,800

1. On the date of combination, the fair value of Slice's depreciable assets was $48,000 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.

2. There was $14,000 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.)