On December 31, 2011, Perseus Ltd. acquired 64% of the common shares of Miram Ltd. for $576,000. The carrying amount of Miram€™s identifiable net assets at the acquisition date was $735,000. Miram€™s common shares and retained earnings were $500,000 and $235,000, respectively. The fair values of Miram€™s identifiable net assets were equal to their carrying amounts on December 31, 2011, except for the following:

The building had 15 years remaining in its useful life.
Following are separate entity financial statements for 2013:

Additional information:
1. Goodwill was assessed at $27,000 on December 31, 2013. There had not been any goodwill impairment prior to 2013.
2. During 2013, Perseus had sales of $270,000 to Miram. At December 31, 2013, $70,000 of this inventory remained unsold. The gross profit on this inventory was $30,000. At the beginning of 2013, Miram held $106,000 of inventory that had been purchased from Perseus. The gross profit relating to this beginning inventory was $50,000.
3. On January 2, 2013, Miram sold some equipment to Perseus for $315,000. Miram€™s carrying amount just prior to the sale was $225,000. The gain is included in Miram€™s income statement under €œother expenses, gains, and losses.€
At the time of the sale, the equipment had six years of remaining useful life.
4. During 2013, Perseus earned $420,000 in management fees from Miram. Miram reports management fee expenses as part of €œother expenses, gains, and losses.€
5. During 2013, Miram paid dividends of $50,000 and Perseus paid dividends of $100,000.
6. The tax rate for both companies is 40%.
7. Perseus uses the partial goodwill concept to value non-controlling interest (NCI).
Required
(a) Prepare Perseus€™s consolidated income statement for the year ended December 31, 2013.
(b) Calculate the balances in the following consolidated balance sheet line items as at December 31, 2013:
1. Property, plant, and equipment€”net
2. Retained earnings

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Land Buildings Fair value $300,000 850,000 Carrying amount $175,000 910,000 PERSEUS LTD. AND MIRAM LTD Statements of Inc ome year ended December 31, 2013 Perseus Ltd $6,042,000 420,000 32,000 6,494,000 3,440,000 325,000 1,529,000 480,000 5,774,000 $720,000 Miram Ltd $1,952,000 0 0 1,952,000 885,000 156,000 596,000 126,000 1,763,000 $ 189,000 Sales revenue Management fee revenue Investment income Cost of goods sold Depreciation expense Other expenses, gains, and losses Income tax expense Total expenses Net income PERSEUS LTD. AND MIRAM LTD Balance Sheets December 31, 2013 Perseus Ltd Miram Ltd Assets Cash and receivables Inventory Total current assets Investment in Miram Ltd Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $735,000 840,000 1,575,000 576,000 3,384,000 5,535,000 $77,000 235,000 312,000 1,645,000 1,957,000 $1,870,000 $1,050,000 2,000,000 1,665,000 3,665,000 $5,535,000 500,000 407,000 907,000 1,957,000