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Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $133,000. At that date, the fair value of Saver's buildings
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $133,000. At that date, the fair value of Saver's buildings and equipment was $22,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price's management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $3,000. Trial balance data for Price and Saver on December 31, 20X8, are as follows: Item Cash Price Corporation Debit $ 20,000 Credit Saver Company Debit $ 22,000 Credit Accounts Receivable Inventory Land 71,000 91,000 12,500 26,000 31,000 Buildings Equipment Investment in Saver Company Cost of Goods Sold 351,000 128,300 126,000 16,000 151,000 111,000 42,500 Depreciation Expense 25,500 Interest Expense 12,500 Other Expenses 15,500 Dividends Declared 31,000 27,500 10,500 4,500 7,500 16,500 Accumulated Depreciation Accounts Payable $145,500 50,000 ences Wages Payable 18,000 Notes Payable 151,000 $ 45,000 17,000 9.500 50.500 Common Stock 201,000 60,000 Retained Earnings 103,000 40,000 Sales 265,000 183,000 Income from Saver Company $945,300 11,800 $945,300 $405,000 $405,000 Required: Prepare the following consolidating entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Check my work
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To address the question we need to prepare a threepart consolidation worksheet for Price Corporation and Saver Company as of December 31 20X8 This req...Get Instant Access to Expert-Tailored Solutions
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