On January 1, 20X4, Parent Ltd. purchased 90% of the shares of Sub Ltd. for $ 975,000. At that time Sub Ltd. had the following SFP:
Sub Ltd.
Statement of Financial Position
January 1, 20X4

The bonds were issued at par and will mature in 10 years. Sub Ltd. has a receivables and inventory turnover of greater than six times per year. The capital assets have an average of 10 years of remaining life and are being amortized straight- line. The annual tests for goodwill impairment have indicated no impairment of goodwill since the date of acquisition.
In 20X4, Sub Ltd. sold inventory to Parent Ltd. for $ 320,000; the inventory had cost $ 260,000. At the end of 20X4, 25% was still in Parent€™s inventory but it was all sold in 20X5.
In 20X5, Parent Ltd. sold inventory to Sub Ltd. for $ 275,000; the inventory had cost $ 200,000. At the end of 20X5, 35% was left in Sub€™s inventory.
During 20X4, the subsidiary earned $ 875,000 and paid dividends of $ 60,000. During 20X5, the subsidiary incurred a loss of $ 172,000 and paid dividends of $ 60,000.
The parent company used the cost method for the investment in subsidiary and netted almost everything to €œOther expenses.€
At December 31, 20X5, the following financial statements were available:
Statements of Financial Position
December 31, 20X5

Statements of Comprehensive Income
Year Ended December 31, 20X5

Required
Under the entity method
a. Prepare a consolidated statement of comprehensive income for 20X5.
b. Calculate the amounts that would appear on the consolidated SFP at December 31, 20X5, for:
1) Goodwill
2) Capital assets, net
3) Bonds payable
4)NCI

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Accounts receivable Inventory FIFO Capital assets, net 1,350,000 Current liabilities Bonds payable Common shares Retained eamings 2 140,000 850,000 $1,960,000 5 6 Accounts receivable 3 Capital assets, net Investment in Sub Ltd Current liabilities Bonds payable Retained eamings, January 1, 20x5 1 7 12,462,000 Parent Ltd. $9,865,000 8,040,000 1,825,000 (106,000) (369,000) Sub Ltd Sales Cost of sales Gross profit Depreciation Other expenses Gain on sale of building Net income and comprehensive income $1,650,000 1,140,000 510,000 (104,000) (808,000) 230,000 172,000) 6 $1,350,000