Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1,201, for $154,000. On that date, the fair value of the noncontrolling interest was $38,500, and Slice reported retained earnings of $45,000 and had $99,000 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 31,205, are as follows: Additional Information 1. On the date of combination, the fair value of Slice's depreciable assets was $48,500 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 $11,000 of intercorporate receivables and payables at the end of 205. b. Prepare all consolidation entries needed to prepare consolidated statements for 205. Prepare a three-part worksheet as of December 31, 205. Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicate 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 the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the cre column of the worksheet. Statement of Retained Earnings Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1,201, for $154,000. On that date, the fair value of the noncontrolling interest was $38,500, and Slice reported retained earnings of $45,000 and had $99,000 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 31,205, are as follows: Additional Information 1. On the date of combination, the fair value of Slice's depreciable assets was $48,500 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 $11,000 of intercorporate receivables and payables at the end of 205. b. Prepare all consolidation entries needed to prepare consolidated statements for 205. Prepare a three-part worksheet as of December 31, 205. Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicate 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 the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the cre column of the worksheet. Statement of Retained Earnings
