Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $198,000. At that date, the fair value of Saver's buildings and equipment was $48,000 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 $9,500. 84,000 Trial balance data for Price and Saver on December 31, 20X8, are as follows: Price Corporation Saver Company Item Debit Credit Debit Credit Cash $ 26,500 $ 35,000 Accounts Receivable 19,000 Inventory 104,000 39,000 Land 44,000 29,000 Buildings & Equipment 298,000 175,000 Investment in Saver Company 197,700 Cost of Goods Sold 139,000 124,000 Wage Expense 115,000 34,000 Depreciation Expense 32,000 17,000 Interest Expense 19,000 11,000 Other Expenses 41,500 40,000 Dividends Declared 44,000 23,000 Accumulated Depreciation $ 152,000 $110,000 Accounts Payable 115,000 24,000 Wages Payable 31,000 16,000 Notes Payable 164,000 2,000 Common Stock 214,000 60,000 Retained Earnings 116,000 40,000 Sales 330,000 294,000 Income from Saver Company 22,700 $1,144,700 $1,144,700 $546,000 $546,000 Required: a. 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.) Required: a. 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.) view transaction list X Record the basic consolidation entry. > B Record the amortized excess value reclassification entry. Record the excess value (differential) reclassification entry. D Record the optional accumulated depreciation consolidation entry. Credit Note : = journal entry has been entered Required: a. Prepare the following consolidating entries needed to prepare a three-part consolidation worksheet as of December entry is required for a transaction/event, select "No journal entry required" in the first account field.) 20X8. (If no view transaction list Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits Event Accounts Debit Credit 1 Record entry Clear entry view consolidation entries b. Prepare a three-part consolidation worksheet for 20X8. (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, 20X8 Consolidation Entries Price Corp. Saver Co. DR CR Consolidated Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Less: Impairment loss Income from Saver Co. Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Ending Balance Assets Cash Accounts receivable Inventory Land Buildings & equipment Less: Accumulated depreciation Investment in Saver Co. Goodwill Total Assets Liabilities & Stockholders' Equity Accounts payable Wages payable Notes payable Common stock Retained earnings Total Liabilities & Equity
