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Record the basic consolidation entry. Record the amortized execess value reclassification entry. Record the excess value (differential) reclassification entry. Record the optional accumulated depreciationconsolidation entry.

image text in transcribedRecord the basic consolidation entry. Record the amortized execess value reclassification entry. Record the excess value (differential) reclassification entry. Record the optional accumulated depreciationconsolidation entry.

Power Corporation acquired 75 percent of Best Company's ownership on January 1, 20x8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Bests net assets at acquisition was $93,000. The book values and fair values of Bests assets and liabilities were equal, except for Bests buildings and equipment, which were worth $18,600 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 Power concluded at December 31, 20x8, that goodwill from its purchase of Best shares had been impaired and the correct carrying amount was $2,600. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders Trial balance data for Power and Best on December 31, 20x8, are as follows: Power Corporation Best Company Item Cash Accounts Receivable Inventory Land Buildings and Equipment Investment in Best Co. Stock 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 Subsidiary Debit Credit Debit Credit $ 54,500 $ 27,000 81,000 18,000 101,000 31,000 37,000 21,000 364,000 151,000 96,705 123,000 108,000 41,000 24,000 23,000 0.000 10,000 4,000 11,500 5,000 34,000 16,400 $ 127,000 $ 40,000 32,000 16,000 17,000 12,000 257,700 70,400 180,000 60,000 82,000 33,000 268,000 184,000 13,005 $ 976,705 $ 976,705 $ 415400 $ 415,400 Required: a. Record all consolidation 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.) Power Corporation acquired 75 percent of Best Company's ownership on January 1, 20x8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Bests net assets at acquisition was $93,000. The book values and fair values of Bests assets and liabilities were equal, except for Bests buildings and equipment, which were worth $18,600 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 Power concluded at December 31, 20x8, that goodwill from its purchase of Best shares had been impaired and the correct carrying amount was $2,600. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders Trial balance data for Power and Best on December 31, 20x8, are as follows: Power Corporation Best Company Item Cash Accounts Receivable Inventory Land Buildings and Equipment Investment in Best Co. Stock 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 Subsidiary Debit Credit Debit Credit $ 54,500 $ 27,000 81,000 18,000 101,000 31,000 37,000 21,000 364,000 151,000 96,705 123,000 108,000 41,000 24,000 23,000 0.000 10,000 4,000 11,500 5,000 34,000 16,400 $ 127,000 $ 40,000 32,000 16,000 17,000 12,000 257,700 70,400 180,000 60,000 82,000 33,000 268,000 184,000 13,005 $ 976,705 $ 976,705 $ 415400 $ 415,400 Required: a. Record all consolidation 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.)

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