1. Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9.
   1. Record the basic consolidation entry.
   2. Record the amortization excess value reclassification entry
   3. Record the excess value (differential) reclassification entry
   4. Record the optional accumulated depreciation consolidation entry

2. Prepare a three-part consolidation worksheet for 20X9.

3. Prepare a consolidated balance sheet, income statement, and retained earnings statement for 20X9.

Pie Corporation acquired 75 percent of Slice Company's ownership on January 1,208, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Slice's net assets at acquisition was $100,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20X8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $2,500. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. No additional impairment occurred in 209. Trial balance data for Pie and Slice on December 31, 20X9, are as follows: PIE CORPORATION AND SUBSIDIARY Assessment Tool iFrame Consolidated Balance Sheet December 31, 20X9 Assets \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow{2}{*}{ Assessment Tool iFrame } & \multirow{2}{*}{PieCorporation} & \multirow{2}{*}{SliceCompany} & \multicolumn{2}{|c|}{ Consolidation Entries } & \multirow[b]{2}{*}{ Consolidated } \\ \hline & & & Debit & Credit & \\ \hline Income Statement & & & & & \\ \hline \multicolumn{6}{|l|}{ Sales } \\ \hline \multicolumn{6}{|l|}{ Less: COGS } \\ \hline \multicolumn{6}{|l|}{ Less: Wage expense } \\ \hline \multicolumn{6}{|l|}{ Less: Depreciation expense } \\ \hline \multicolumn{6}{|l|}{ Less: Interest expense } \\ \hline \multicolumn{6}{|l|}{ Less: Other expenses } \\ \hline \multicolumn{6}{|l|}{ Income from Slice Company } \\ \hline Consolidated net income & $ & $ & $ & $ & $ \\ \hline \multicolumn{6}{|l|}{NCl in net income } \\ \hline Controlling Interest in Net Income & $ & $ & $ & $ & $ \\ \hline \multicolumn{6}{|l|}{ Statement of Retained Earnings } \\ \hline \multicolumn{6}{|l|}{ Beginning balance } \\ \hline \multicolumn{6}{|l|}{ Net income } \\ \hline \multicolumn{6}{|l|}{ Less: Dividends declared } \\ \hline Ending Balance & $ & $ & $ & $ & $ \\ \hline \multicolumn{6}{|l|}{ Balance Sheet } \\ \hline \multicolumn{6}{|l|}{ Cash } \\ \hline \multicolumn{6}{|l|}{ Accounts receivable } \\ \hline \multicolumn{6}{|l|}{ Inventory } \\ \hline \multicolumn{6}{|l|}{ Land } \\ \hline \multicolumn{6}{|l|}{ Buildings and equipment } \\ \hline \multicolumn{6}{|l|}{ Less: Accumulated depreciation } \\ \hline \multicolumn{6}{|l|}{ Investment in Slice Company } \\ \hline Goodwill & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline Total Assets & $ & 0 & $ & 0 & $ & 0 & $ & 0 & $ & 0 \\ \hline \multicolumn{11}{|l|}{ Accounts payable } \\ \hline \multicolumn{11}{|l|}{ Wages payable } \\ \hline \multicolumn{11}{|l|}{ Notes payable } \\ \hline \multicolumn{11}{|l|}{ Common stock } \\ \hline \multicolumn{11}{|l|}{ Retained earnings } \\ \hline \multicolumn{11}{|l|}{NCl in NA of Slice Company } \\ \hline Total Liabilities and Equity & $ & 0 & $ & 0 & $ & 0 & $ & 0 & $ & 0 \\ \hline \end{tabular} PIE CORPORATION AND SUBSIDIARY Consolidated Income Statement Year Ended December 31, 20X9 \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total expenses & & \\ \hline Consolidated net income & & \\ \hline & & \\ \hline Income to controlling interest & & $ \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ PIE CORPORATION AND SUBSIDIARY } \\ \hline \multicolumn{1}{|c|}{ Consolidated Retained Earnings Statement } \\ \hline \multicolumn{1}{|c|}{ Year Ended December 31, 20X9 } \\ \hline Retained Earnings, January 1, 20X9 & \\ \hline Income to Controlling Interest, 20X9 & \\ \hline & $ \\ \hline Dividends Declared, 20X9 & \\ \hline Retained Earnings, December 31, 20X9 & \\ \hline \end{tabular} Pie Corporation acquired 75 percent of Slice Company's ownership on January 1,208, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Slice's net assets at acquisition was $100,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20X8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $2,500. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. No additional impairment occurred in 209. Trial balance data for Pie and Slice on December 31, 20X9, are as follows: PIE CORPORATION AND SUBSIDIARY Assessment Tool iFrame Consolidated Balance Sheet December 31, 20X9 Assets \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow{2}{*}{ Assessment Tool iFrame } & \multirow{2}{*}{PieCorporation} & \multirow{2}{*}{SliceCompany} & \multicolumn{2}{|c|}{ Consolidation Entries } & \multirow[b]{2}{*}{ Consolidated } \\ \hline & & & Debit & Credit & \\ \hline Income Statement & & & & & \\ \hline \multicolumn{6}{|l|}{ Sales } \\ \hline \multicolumn{6}{|l|}{ Less: COGS } \\ \hline \multicolumn{6}{|l|}{ Less: Wage expense } \\ \hline \multicolumn{6}{|l|}{ Less: Depreciation expense } \\ \hline \multicolumn{6}{|l|}{ Less: Interest expense } \\ \hline \multicolumn{6}{|l|}{ Less: Other expenses } \\ \hline \multicolumn{6}{|l|}{ Income from Slice Company } \\ \hline Consolidated net income & $ & $ & $ & $ & $ \\ \hline \multicolumn{6}{|l|}{NCl in net income } \\ \hline Controlling Interest in Net Income & $ & $ & $ & $ & $ \\ \hline \multicolumn{6}{|l|}{ Statement of Retained Earnings } \\ \hline \multicolumn{6}{|l|}{ Beginning balance } \\ \hline \multicolumn{6}{|l|}{ Net income } \\ \hline \multicolumn{6}{|l|}{ Less: Dividends declared } \\ \hline Ending Balance & $ & $ & $ & $ & $ \\ \hline \multicolumn{6}{|l|}{ Balance Sheet } \\ \hline \multicolumn{6}{|l|}{ Cash } \\ \hline \multicolumn{6}{|l|}{ Accounts receivable } \\ \hline \multicolumn{6}{|l|}{ Inventory } \\ \hline \multicolumn{6}{|l|}{ Land } \\ \hline \multicolumn{6}{|l|}{ Buildings and equipment } \\ \hline \multicolumn{6}{|l|}{ Less: Accumulated depreciation } \\ \hline \multicolumn{6}{|l|}{ Investment in Slice Company } \\ \hline Goodwill & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline Total Assets & $ & 0 & $ & 0 & $ & 0 & $ & 0 & $ & 0 \\ \hline \multicolumn{11}{|l|}{ Accounts payable } \\ \hline \multicolumn{11}{|l|}{ Wages payable } \\ \hline \multicolumn{11}{|l|}{ Notes payable } \\ \hline \multicolumn{11}{|l|}{ Common stock } \\ \hline \multicolumn{11}{|l|}{ Retained earnings } \\ \hline \multicolumn{11}{|l|}{NCl in NA of Slice Company } \\ \hline Total Liabilities and Equity & $ & 0 & $ & 0 & $ & 0 & $ & 0 & $ & 0 \\ \hline \end{tabular} PIE CORPORATION AND SUBSIDIARY Consolidated Income Statement Year Ended December 31, 20X9 \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total expenses & & \\ \hline Consolidated net income & & \\ \hline & & \\ \hline Income to controlling interest & & $ \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ PIE CORPORATION AND SUBSIDIARY } \\ \hline \multicolumn{1}{|c|}{ Consolidated Retained Earnings Statement } \\ \hline \multicolumn{1}{|c|}{ Year Ended December 31, 20X9 } \\ \hline Retained Earnings, January 1, 20X9 & \\ \hline Income to Controlling Interest, 20X9 & \\ \hline & $ \\ \hline Dividends Declared, 20X9 & \\ \hline Retained Earnings, December 31, 20X9 & \\ \hline \end{tabular}