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Urgent help Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $128,000. At that date. the fair value of Saver's
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Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $128,000. At that date. the fair value of Saver's buildings and equipment was $20,000 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 $2,500. Trial balance data for Price and Saver on December 31. 20X8. are as follows: Price Corporation Saver Company Item Debit Credit Debit credit Cash $ 19,566 $ 21,666 Accounts Receivable 76,666 12,666 Inventory 96,666 25,666 Land 36,666 15,666 Buildings and Equipment 356,666 156,666 Investment in Saver Company 128,566 Cost of Goods Sold 125,666 116,666 Wage Expense 42,666 27,666 Depreciation Expense 25,666 16,666 Interest Expense 12,666 4,666 Other Expenses 13,566 5,666 Dividends Declared 36,666 16,666 Accumulated Depreciation $ 145,666 $ 46,666 Accounts Payable 45,666 16,666 Wages Payable 17,666 9,666 Notes Payable 156,666 56,666 Common Stock 266,666 66,666 Retained Earnings 162,666 46,666 Sales 266,666 186,666 Income from Saver Company 16,566 3 935,566 $ 935,566 $ 395,666 $ 395,666 Required: a. Prepare all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. b. Prepare a three-part consolidation worksheet for 20X8 in good form. Complete this question by entering your answers in the tabs belowStep by Step Solution
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