Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $149,000. On that date, the fair value of the noncontrolling interest was $37,250, and Slice reported retained earnings of $46,000 and had $93,000 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

CorporationSlice

Products CompanyItemDebitCreditDebitCreditCash & Receivables$87,000$68,000Inventory277,000107,000Land87,00087,000Buildings & Equipment510,000162,000Investment in Slice Products Company177,460Cost of Goods Sold120,00046,000Depreciation Expense25,00015,000Inventory Losses15,0005,000Dividends Declared35,00018,800Accumulated Depreciation$191,000$105,000Accounts Payable54,00014,000Notes Payable257,440106,800Common Stock293,00093,000Retained Earnings307,00083,000Sales202,000107,000Income from Slice Products Company29,020$1,333,460$1,333,460$508,800$508,800

1. On the date of combination, the fair value of Slice's depreciable assets was $47,250 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 $10,000 of intercorporate receivables and payables at the end of 20X5.

Prepare 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.)