Price Corporation acquired $100$ percent ownership of Saver Company on January $1,20$X$8,$ for $$111,100.$ At that date, the fair value of Saver's buildings and equipment was $$19,000$ more than the book value. Buildings and equipment are depreciated on a $5-$year basis. Although goodwill is not amortized, Price$$s management concluded at December $31,20$X$8,$ that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $$2,400.$ No additional impairment occurred in $20$X$9.$

Trial balance data for Price and Saver on December $31,20$X$9,$ are as follows:

Item Price Corporation Saver Company

Debit Credit Debit Credit

Cash $ $47,500$ $ $37,000$

Accounts Receivable $86,00018,000$

Inventory $98,00028,000$

Land $60,00029,000$

Buildings and Equipment $350,000167,000$

Investment in Saver Company $125,600$

Cost of Goods Sold $144,000110,000$

Wage Expense $33,00018,000$

Depreciation Expense $23,0009,000$

Interest Expense $10,0003,000$

Other Expenses $21,00014,000$

Dividends Declared $39,00029,200$

Accumulated Depreciation $ $166,000$ $ $33,000$

Accounts Payable $40,0009,000$

Wages Payable $8,0005,000$

Notes Payable $147,000120,200$

Common Stock $188,00053,000$

Retained Earnings $145,90041,000$

Sales $299,000201,000$

Income from Saver Company $43,200$

$ $1,037,100$ $ $1,037,100$ $ $462,200$ $ $462,200$

Required:

a$.$ Prepare all consolidating entries needed to prepare a three$-$part consolidation worksheet as of December $31,20$X$9.$

$1.$ Record the basic consolidation entry.

$2.$ Record the amortized excess value reclassification entry.

$3.$ Record the excess value $($differential$)$ reclassification entry.

$4.$ Record the optional accumulated depreciation consolidation entry.

b$.$ Prepare a three$-$part consolidation worksheet for $20$X$9$

Consolidated Financial Statements Worksheet

December $31,20$X$9$

Price Corporation Saver Company Consolidation Entries Consolidated

Debit Credit

Income Statement

Sales

Less: COGS

Less: Wage expense

Less: Depreciation expense

Less: Interest expense

Less: Other expenses

Income from Saver Company

Net Income $$0$ $$0$ $$0$ $$0$ $$0$

Statement of Retained Earnings

Beginning balance

Net income

Less: Dividends declared

Ending Balance $$0$ $$0$ $$0$ $$0$ $$0$

Assets

Cash

Accounts receivable

Inventory

Land

Buildings and equipment

Less: Accumulated depreciation

Investment in Saver Company

Goodwill

Total Assets $$0$ $$0$ $$0$ $$0$ $$0$

Liabilities and Stockholders' Equity

Accounts payable

Wages payable

Notes payable

Common stock

Retained earnings

Total Liabilities and Equity