1. Record the basic consolidation entry. Record the amortized excess value reclassification entry. Record the excess value (differential) classification entry. & Record the optional accumulated depreciation consolidation entry.

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

Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $104,500. At that date, the fair value of Saver's buildings and equipment was $18,000 more than the book value. Accumulated depreciation on this date was $12,000. Buildings and equipment are depreciated on a 5-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 $2,600. No additional impairment occurred in 20X9. Trial balance data for Price and Saver on December 31, 20X9, are as follows: Saver Company Debit Credit $ 41,000 14,000 24,000 25,000 153,000 Item Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Saver Company 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 Saver Company Price Corporation Debit Credit $ 54,500 87,000 99,000 65,000 357,000 119,000 136,000 31,000 21,000 8,000 19,000 38,000 $ 167,000 43,000 12,000 132,000 182,000 150, 100 291,000 57,400 $1,034,500 $1,034,500 107,000 16,000 10,000 3,000 12,000 43,400 $ 32,000 13,000 6,000 100,400 50,000 38,000 209,000 $448,400 $448,400 PRICE CORPORATION AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X9 Consolidation Entries Price Corp. Saver Co. DR CR Consolidated $ 0 $ 0 $ 0 $ 0 $ 0 Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Income from Saver Co. Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Assets Cash Accounts receivable Inventory Land Buildings & equipment $ 0 $ 0 $ 0 $ 0 $ 0 $ $ 0 $ 0 $ 0 $ 0 $ 0 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 $ 0 $ 0 $ 0 $ 0 $ 0 Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $104,500. At that date, the fair value of Saver's buildings and equipment was $18,000 more than the book value. Accumulated depreciation on this date was $12,000. Buildings and equipment are depreciated on a 5-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 $2,600. No additional impairment occurred in 20X9. Trial balance data for Price and Saver on December 31, 20X9, are as follows: Saver Company Debit Credit $ 41,000 14,000 24,000 25,000 153,000 Item Cash Accounts Receivable Inventory Land Buildings & Equipment Investment in Saver Company 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 Saver Company Price Corporation Debit Credit $ 54,500 87,000 99,000 65,000 357,000 119,000 136,000 31,000 21,000 8,000 19,000 38,000 $ 167,000 43,000 12,000 132,000 182,000 150, 100 291,000 57,400 $1,034,500 $1,034,500 107,000 16,000 10,000 3,000 12,000 43,400 $ 32,000 13,000 6,000 100,400 50,000 38,000 209,000 $448,400 $448,400 PRICE CORPORATION AND SUBSIDIARY Consolidated Financial Statements Worksheet December 31, 20X9 Consolidation Entries Price Corp. Saver Co. DR CR Consolidated $ 0 $ 0 $ 0 $ 0 $ 0 Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Income from Saver Co. Net Income Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Assets Cash Accounts receivable Inventory Land Buildings & equipment $ 0 $ 0 $ 0 $ 0 $ 0 $ $ 0 $ 0 $ 0 $ 0 $ 0 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 $ 0 $ 0 $ 0 $ 0 $ 0