P$5-39$ Comprehensive Problem: Majority$-$Owned Subsidiary

Pizza Corporation acquired $80$ percent ownership of Slice Products Company on January $1,20$XI$,$ for $$160,000.$ On that date, the fair value of the noncontrolling interest was $$40,000,$ and Slice reported retained earnings of $$50,000$ and had $$100,000$ of common stock outstanding. Pizza has used the equity method in accounting for its investment in Slice.

Trial balance data for the two companies on December $31,20$X$5,$ are as follows:

$\backslash$table$[[$Item$,$Pizza Corporation,Slice Products Company$],[,$Debit,Credit,Debit,Credit$],[$Cash & Receivables,$$,81\mathrm{.}000,,$$$65,000,],[$Inventory$,,260,000,,90,000,],[$Land$,,80\mathrm{.}000,,80,000,],[$Buildings & Equipment,,$500,000,,150,000,],[$Investment in Slice Products,,$188,000,,,],[$Cost of Goods Sold,,$120\mathrm{.}000,,50,000,],[$Depreciation Expense,,$25,000,,15,000,],[$Inventory Losses,,$15,000,,5,000,],[$Dividends Declared,,$30\mathrm{.}000,,10,000,],[$Accumulated Depreciation,,,$$205,000,,$$$105,000$

Additional information:

$1.$on the date of combination, the fair value of Slice's depreciable assets was $$50,000$ more than book value. The accumulated depreciation on these assets should be written off over the following $10$ year period.

$2.$ There was $$10,000$ of intercorporate receivables and payables ar the end of $20$X$5.$

Required:

A$)$ Give all journal entries that Pizza recorded during $20$X$5$ related to its investment in Slice.

B$)$ Give all consilidation entries needed to prepare consolidated statements for $20$X$5.$