Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $99,000. At...

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Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $99,000. At that date, the fair value of the noncontrolling interest was $33,000. The book value of Slice's net assets at acquisition was $94,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $18,800 more than book value. Accumulated depreciation on the buildings and equipment was $27,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20X8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $3,200. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Pie and Slice on December 31, 20X8, are as follows: Item Cash Pie Corporation Debit $ 50,500 Slice Company Credit Debit Credit $ 22,000 Accounts Receivable Inventory 73,000 13,000 93,000 26,000 Land 41,000 16,000 Buildings and Equipment 356,000 159,000 Investment in Slice Company 101,490 Cost of Goods Sold 120,000 105,000 Wage Expense 38,000 20,000 Depreciation Expense 22,000 9,000 Interest Expense 9,000 3,000 Other Expenses 10,500 4,000 Dividends Declared 39,000 17,800 Accumulated Depreciation Accounts Payable $ 126,000 30,000 $ 36,000 14,000 Wages Payable 15,000 10,000 Notes Payable 237,650 60,800 Common Stock 180,000 60,000 Retained Earnings 82,000 34,000 Sales Income from Slice Company 267,000 15,840 180,000 $ 953,490 $ 953,490 $ 394,800 $ 394,800 Required: a. Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Required: a. Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Entry A 1 Common stock Retained earnings Answer is not complete. Accounts Income from Slice Company NCI in Net Income of Slice Company Dividends declared Investment in Slice Company NCI in Net assets of Slice Company B 2 Depreciation expense Goodwill impairment loss Income from Slice Company NCI in Net Income of Slice Company C 3 Buildings and equipment Goodwill Accumulated depreciation Investment in Slice Company NCI in Net assets of Slice Company Accumulated depreciation D 4 Buildings and equipment Debit Credit 60,000 34,000 29,250 9,750 17,800 13,350 13,350 27,090 27,090 b. Prepare a three-part consolidation worksheet for 20X8. Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicate a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts w multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit colu the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Less: Impairment loss Answer is not complete. PIE CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20X8 Pie Corporation Slice Company Consolidation Entries Consolidated Debit Credit $ 267,000 $ 180,000 (120,000) (105,000) (38,000) (20,000) (22,000) (9,000) (9,000) (3,000) (10,500) (4,000) $ 447,000 (225,000) (58,000) (31,000) (12,000) (14,500) Income from Slice Company Consolidated net income $ 67,500 $ 39,000 $ 0 $ 0 $ 106,500 NCI in net income 0 Controlling Interest in Net Income $ 67,500 $ 39,000 $ 0 $ 0 $ 106,500 Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Cash Accounts receivable Inventory Land Buildings and equipment Less: Accumulated depreciation Investment in Slice Company Goodwill Total Assets Accounts payable Wages payable Notes payable Common stock $ 0 $ 0 SA 0 $ 0 S $ 0 $ 0 $ 0 $ 0 $ 0 Retained earnings NCI in NA of Slice Company Total Liabilities and Equity $ 0 S 0 $ 0 S 0 $ 0 Pie Corporation acquired 75 percent of Slice Company's ownership on January 1, 20X8, for $99,000. At that date, the fair value of the noncontrolling interest was $33,000. The book value of Slice's net assets at acquisition was $94,000. The book values and fair values of Slice's assets and liabilities were equal, except for Slice's buildings and equipment, which were worth $18,800 more than book value. Accumulated depreciation on the buildings and equipment was $27,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20X8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $3,200. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Pie and Slice on December 31, 20X8, are as follows: Item Cash Pie Corporation Debit $ 50,500 Slice Company Credit Debit Credit $ 22,000 Accounts Receivable Inventory 73,000 13,000 93,000 26,000 Land 41,000 16,000 Buildings and Equipment 356,000 159,000 Investment in Slice Company 101,490 Cost of Goods Sold 120,000 105,000 Wage Expense 38,000 20,000 Depreciation Expense 22,000 9,000 Interest Expense 9,000 3,000 Other Expenses 10,500 4,000 Dividends Declared 39,000 17,800 Accumulated Depreciation Accounts Payable $ 126,000 30,000 $ 36,000 14,000 Wages Payable 15,000 10,000 Notes Payable 237,650 60,800 Common Stock 180,000 60,000 Retained Earnings 82,000 34,000 Sales Income from Slice Company 267,000 15,840 180,000 $ 953,490 $ 953,490 $ 394,800 $ 394,800 Required: a. Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Required: a. Record all consolidation entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Entry A 1 Common stock Retained earnings Answer is not complete. Accounts Income from Slice Company NCI in Net Income of Slice Company Dividends declared Investment in Slice Company NCI in Net assets of Slice Company B 2 Depreciation expense Goodwill impairment loss Income from Slice Company NCI in Net Income of Slice Company C 3 Buildings and equipment Goodwill Accumulated depreciation Investment in Slice Company NCI in Net assets of Slice Company Accumulated depreciation D 4 Buildings and equipment Debit Credit 60,000 34,000 29,250 9,750 17,800 13,350 13,350 27,090 27,090 b. Prepare a three-part consolidation worksheet for 20X8. Note: Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicate a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts w multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit colu the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Income Statement Sales Less: COGS Less: Wage expense Less: Depreciation expense Less: Interest expense Less: Other expenses Less: Impairment loss Answer is not complete. PIE CORPORATION AND SUBSIDIARY Worksheet for Consolidated Financial Statements December 31, 20X8 Pie Corporation Slice Company Consolidation Entries Consolidated Debit Credit $ 267,000 $ 180,000 (120,000) (105,000) (38,000) (20,000) (22,000) (9,000) (9,000) (3,000) (10,500) (4,000) $ 447,000 (225,000) (58,000) (31,000) (12,000) (14,500) Income from Slice Company Consolidated net income $ 67,500 $ 39,000 $ 0 $ 0 $ 106,500 NCI in net income 0 Controlling Interest in Net Income $ 67,500 $ 39,000 $ 0 $ 0 $ 106,500 Statement of Retained Earnings Beginning balance Net income Less: Dividends declared Ending Balance Balance Sheet Cash Accounts receivable Inventory Land Buildings and equipment Less: Accumulated depreciation Investment in Slice Company Goodwill Total Assets Accounts payable Wages payable Notes payable Common stock $ 0 $ 0 SA 0 $ 0 S $ 0 $ 0 $ 0 $ 0 $ 0 Retained earnings NCI in NA of Slice Company Total Liabilities and Equity $ 0 S 0 $ 0 S 0 $ 0