Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $112,100. At that date, the fair value of Saver's buildings and equipment was $18,000 more than the book value. Accumulated depreciation on this date was $25,000. 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 $2,400. No additional impairment occurred in 20X9. Trial balance data for Price and Saver on December 31, 20X9, are as follows: Saver Company Debit Credit $ 35,000 18,000 28,000 29,000 153,000 Item Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Saver Company Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Sales Income from Saver Company Price Corporation Debit Credit $ 64,500 91,000 103,000 61,000 366,000 126,600 140,000 30,000 20,000 7,000 18,000 35,000 $ 159,000 39,000 9,000 136,000 197,000 167,900 298,000 56,200 $1,062,100 $1,062,100 112,000 15,000 8,000 3,000 11,000 42,200 $ 41,000 10,000 5,000 97,200 53,000 41,000 207,000 $454,200 $454,200 Required: a. Prepare all consolidating entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list transaction list No Event Accounts Debit Credit A 1 Common stock Retained earnings Income from Saver Company Dividends declared Investment in Saver Company B 2 Depreciation expense Income from Saver Company C 3 Buildings and equipment Goodwill Accumulated depreciation Investment in Saver Company D 4 Accumulated depreciation Buildings and equipment b. Prepare a three-part consolidation worksheet for 20X9. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated 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 in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) PRICE CORPORATION AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X9 Consolidation Entries DR CR Price Corp. Saver Co. Consolidated Income Statement Sales Less: COGS $ 0 $ 0 $ 0 $ 0 $ 0 Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Income from Saver Co. Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Assets $ 0 $ 0 $ 0 $ 0 $ 0 Cash Accounts receivable Inventory Land Buildings & equipment Less: Accumulated depreciation Investment in Saver Co. Goodwill $ 0 $ 0 $ 0 $ 0 $ 0 Total Assets Liabilities & Stockholders' Equity Accounts payable Wages payable Notes payable Common stock Retained earnings Total Liabilities & Equity $ 0 $ 0 $ 0 $ 0 $ 0 C-1. Prepare a consolidated balance sheet for 20X9. (Amounts to be deducted should be indicated with a minus sign.) PRICE CORPORATION AND SUBSIDIARY Consolidated Balance Sheet December 31, 20X9 Assets Cash Accounts receivable Inventory Land Buildings and equipment Accumulated depreciation Goodwill 0 Total Assets Liabilities and Stockholders' Equity Accounts payable Wages payable Notes payable Common stock Retained earnings Total Liabilities and Stockholders' Equity $ 0 C-2. Prepare a consolidated income statement for 20X9. PRICE CORPORATION AND SUBSIDIARY Consolidated Income Statement Year Ended December 31, 20X9 0 Total Expenses Consolidated net income $ 0 C-3. Prepare a retained earnings statement for 20X9. PRICE CORPORATION AND SUBSIDIARY Consolidated Retained Earnings Statement Year Ended December 31, 20X9 Retained Earnings, January 1, 20X9 $ 0 Retained Earnings, December 31, 20X9 $ 0 Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $112,100. At that date, the fair value of Saver's buildings and equipment was $18,000 more than the book value. Accumulated depreciation on this date was $25,000. 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 $2,400. No additional impairment occurred in 20X9. Trial balance data for Price and Saver on December 31, 20X9, are as follows: Saver Company Debit Credit $ 35,000 18,000 28,000 29,000 153,000 Item Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Saver Company Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Wages Payable Notes Payable Common Stock Retained Earnings Sales Income from Saver Company Price Corporation Debit Credit $ 64,500 91,000 103,000 61,000 366,000 126,600 140,000 30,000 20,000 7,000 18,000 35,000 $ 159,000 39,000 9,000 136,000 197,000 167,900 298,000 56,200 $1,062,100 $1,062,100 112,000 15,000 8,000 3,000 11,000 42,200 $ 41,000 10,000 5,000 97,200 53,000 41,000 207,000 $454,200 $454,200 Required: a. Prepare all consolidating entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list transaction list No Event Accounts Debit Credit A 1 Common stock Retained earnings Income from Saver Company Dividends declared Investment in Saver Company B 2 Depreciation expense Income from Saver Company C 3 Buildings and equipment Goodwill Accumulated depreciation Investment in Saver Company D 4 Accumulated depreciation Buildings and equipment b. Prepare a three-part consolidation worksheet for 20X9. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated 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 in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) PRICE CORPORATION AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X9 Consolidation Entries DR CR Price Corp. Saver Co. Consolidated Income Statement Sales Less: COGS $ 0 $ 0 $ 0 $ 0 $ 0 Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Income from Saver Co. Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Assets $ 0 $ 0 $ 0 $ 0 $ 0 Cash Accounts receivable Inventory Land Buildings & equipment Less: Accumulated depreciation Investment in Saver Co. Goodwill $ 0 $ 0 $ 0 $ 0 $ 0 Total Assets Liabilities & Stockholders' Equity Accounts payable Wages payable Notes payable Common stock Retained earnings Total Liabilities & Equity $ 0 $ 0 $ 0 $ 0 $ 0 C-1. Prepare a consolidated balance sheet for 20X9. (Amounts to be deducted should be indicated with a minus sign.) PRICE CORPORATION AND SUBSIDIARY Consolidated Balance Sheet December 31, 20X9 Assets Cash Accounts receivable Inventory Land Buildings and equipment Accumulated depreciation Goodwill 0 Total Assets Liabilities and Stockholders' Equity Accounts payable Wages payable Notes payable Common stock Retained earnings Total Liabilities and Stockholders' Equity $ 0 C-2. Prepare a consolidated income statement for 20X9. PRICE CORPORATION AND SUBSIDIARY Consolidated Income Statement Year Ended December 31, 20X9 0 Total Expenses Consolidated net income $ 0 C-3. Prepare a retained earnings statement for 20X9. PRICE CORPORATION AND SUBSIDIARY Consolidated Retained Earnings Statement Year Ended December 31, 20X9 Retained Earnings, January 1, 20X9 $ 0 Retained Earnings, December 31, 20X9 $ 0