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Price Corporation acquired $100$ percent ownership of Saver Company on January $1,20$X$8,$ for $$203,000.$ At that date, the fair value of Saver$$s buildings and equipment was $$50,000$ more than the book value. Buildings and equipment are depreciated on a $10-$year basis. Although goodwill is not amortized, Price$$s management concluded at December $31,20$X$8,$ that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $$10,000.$

Trial balance data for Price and Saver on December $31,20$X$8,$ are as follows:

Item Price Corporation Saver Company

Debit Credit Debit Credit

Cash $ $27,000$ $ $36,000$

Accounts Receivable $85,00019,500$

Inventory $105,00040,000$

Land $45,00030,000$

Buildings and Equipment $299,000175,500$

Investment in Saver Company $199,500$

Cost of Goods Sold $140,000125,000$

Wage Expense $115,50034,500$

Depreciation Expense $32,50017,500$

Interest Expense $19,50011,500$

Other Expenses $43,50042,500$

Dividends Declared $45,00023,500$

Accumulated Depreciation $ $152,500$ $ $115,000$

Accounts Payable $120,00023,000$

Wages Payable $32,00016,500$

Notes Payable $165,0002,000$

Common Stock $215,00060,000$

Retained Earnings $117,00040,000$

Sales $335,000299,000$

Income from Saver Company $20,000$

$ $1,156,500$ $ $1,156,500$ $ $555,500$ $ $555,500$

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