Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $150,000. On that date, the fair value of the noncontrolling interest was $37,500, and Slice reported retained earnings of $42,000 and had $98,000 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: slice Products Company Debit Credit $ 81,000 98,000 90,000 162,000 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 Corporation Debit Credit 86,000 264,000 90,000 504,000 186,840 118,000 21,000 11,000 48,000 $ 204,000 58,000 215, 440 299,000 313,000 204,000 35,400 42,000 11,000 6,000 25, 200 $ 77,000 15,000 129,200 98,000 88,000 108,000 $1,328,840 $1,328,840 $515,200 $515,200 Additional Information 1. On the date of combination, the fair value of Slice's depreciable assets was $47,500 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.) view transaction list Consolidation Worksheet Entries Record basic consolidation entry. Note: Enter debits before credits. Event Accounts Debit Credit Record entry Clear entry view consolidation entries 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.) view transaction list Consolidation Worksheet Entries Record the amortized excess value reclassification entry. Note: Enter debits before credits. Event Accounts Debit Credit Record entry Clear entry view consolidation entries 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.) view transaction list Consolidation Worksheet Entries