Problem $5-33($Static$)$ Consolidation Worksheet at End of First Year of Ownership LO $5-2$

Ple Corporation acquired $75$ percent of Slice Companys ownership on January $1,208,$ for $$96,000.$ At that date, the fair value of the noncontrolling interest was $$32,000.$ The book value of Slice's net assets at acquisition was $$100,000.$ The book values and fair values of Slice's assets and liabilities were equal. except for Slice's buildings and equipment. which were worth $$20,000$ more than book value. Accumulated depreciation on the buildings and equipment was $$30,000$ 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 $31,208,$ that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $$2,500.$ Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders.

Trial balance data for Pie and Slice on December $31,20\backslash$times $8,$ are as follows:

$\backslash$table$[[$Item$,$Pie Corporation,Slice Company$],[$Debit$,$Credit,Debit,Credit$],[$Cash$,$$ $47,500,,$$$21,000,],[$Accounts Receivable,$70,000,,12,000,],[$Inventory$,90,000,,25,000,],[$Land$,30,000,,15,000,],[$Buildings and Equipment,$350,000,,150,000,],[$Investment in Slice Company,$96,375,,,],[$Cost of Goods Sold,$125,000,,110,000,],[$Wage Expense,$42,000,,27,000,],[$Depreciation Expense,$25,000,,10,000,],[$Interest Expense,$12,000,,4,000,],[$Other Expenses,$13,500,,5,000,],[$Dividends Declared,$30,000,,16,000,],[$Accumulated Depreciation,,$$145,000,,$$$40,000],[$Accounts Payable,,$45,000,,16,000],[$Wages Payable,,$17,000,,9,000],[$Notes Payable,,$150,000,,50,000],[$Common Stock,,$200,000,,60,000],[$Retained Earnings,,$102,000,,40,000],[$Sales$,,260,000,,180,000],[$Income from Slice Company,,$12,375,,],[,$$$931,375,$$$931,375,$$$395,000,$$$395,000]]$

Required:

A$.$ Record all consolidation entries needed to prepare a three$-$part consolidation worksheet as of December $31,20$X$8.$ Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

$1.$ Record the basic consolidation entry.

$2.$ Record the amortized excess value reclassification entry.

$3.$ Record the excess value $($differential$)$ reclassification entry

$4.$ Record the optional accumulated depreciation consolidation entry

B$.$ Prepare a three$-$part consolidation worksheet for $20$X$8$