On January 1,20X8,Vector Company acquired 80 percent of Scalar Company's ownership on for $120,000 cash.At that date,the fair value of the noncontrolling interest was $30,000.The book value of Scalar's net assets at acquisition was $125,000.The book values and fair values of Scalar's assets and liabilities were equal,except for buildings and equipment,which were worth $15,000 more than book value.Buildings and equipment are depreciated on a 10-year basis.Although goodwill is not amortized,the management of Vector concluded at December 31,20X8,that goodwill from its acquisition of Scalar shares had been impaired and the correct carrying amount was $5,000.Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders.No additional impairment occurred in 20X9.
Trial balance data for Vector and Scalar on December 31,20X9,are as follows:

Required:
1)Provide all consolidating entries needed to prepare a three-part consolidation worksheet as of December 31,20X9.
2)Prepare a three-part consolidation worksheet for 20X9 in good form.
Problem 57 (continued):

Question

On January 1,20X8,Vector Company acquired 80 percent of Scalar Company's ownership on for $120,000 cash.At that date,the fair value of the noncontrolling interest was $30,000.The book value of Scalar's net assets at acquisition was $125,000.The book values and fair values of Scalar's assets and liabilities were equal,except for buildings and equipment,which were worth $15,000 more than book value.Buildings and equipment are depreciated on a 10-year basis.Although goodwill is not amortized,the management of Vector concluded at December 31,20X8,that goodwill from its acquisition of Scalar shares had been impaired and the correct carrying amount was $5,000.Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders.No additional impairment occurred in 20X9.
Trial balance data for Vector and Scalar on December 31,20X9,are as follows:
  
Required:
1)Provide all consolidating entries needed to prepare a three-part consolidation worksheet as of December 31,20X9.
2)Prepare a three-part consolidation worksheet for 20X9 in good form.
Problem 57 (continued):

Quizplus · Accepted Answer

The Answer of On January 1,20X8,Vector Company acquired 80 percent of Scalar Company's ownership on for $120,000 cash.At that date,the fair value of the noncontrolling interest was $30,000.The book value of Scalar's net assets at acquisition was $125,000.The book values and fair values of Scalar's assets and liabilities were equal,except for buildings and equipment,which were worth $15,000 more than book value.Buildings and equipment are depreciated on a 10-year basis.Although goodwill is not amortized,the management of Vector concluded at December 31,20X8,that goodwill from its acquisition of Scalar shares had been impaired and the correct carrying amount was $5,000.Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders.No additional impairment occurred in 20X9.
Trial balance data for Vector and Scalar on December 31,20X9,are as follows:
  
Required:
1)Provide all consolidating entries needed to prepare a three-part consolidation worksheet as of December 31,20X9.
2)Prepare a three-part consolidation worksheet for 20X9 in good form.
Problem 57 (continued):

On January 1,20X8,Vector Company Acquired 80 Percent of Scalar Company's