Question

Mill Corporation acquired 100 percent ownership of Roller Company on January 1, 20X8, for $128,000. At that date, the fair value of Roller’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, Mill’s management concluded at December 31, 20X8, that goodwill involved in its acquisition of Roller shares had been impaired and the correct carrying value was $2,500. No additional impairment occurred in 20X9. Trial balance data for Mill and Roller on December 31, 20X9, are as follows:



Required
a. Give all elimination entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9.
b. Prepare a three-part consolidation worksheet for 20X9 in good form.
c. Prepare a consolidated balance sheet, income statement, and retained earnings statement for20X9.


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  • CreatedMay 23, 2014
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