On January 1, Year 5, PET Company acquired 900 ordinary shares of SET Company for $63,000. On this date, the shareholders€™ equity accounts of SET Company were as follows:
Ordinary shares (1,000 no par value shares issued)....... $20,000
Preferred shares (4,000 no par value shares issued) (Note 1) ...40,000
Retained earnings..................... 30,000
.......................... $90,000
The following are the statements of retained earnings for the two companies for Year 5:

Additional Information
€¢ PET uses the cost method to account for its investment in SET.
€¢ Any acquisition differential is allocated to patents with an estimated useful life of six years as at January 1, Year 5. Neither company has any patents recorded on their separate-entity records.
Required:
(a) Prepare a consolidated statement of retained earnings for Year 5.
(b) Prepare an independent calculation of consolidated retained earnings at the end of Year 5.
(c) Calculate non-controlling interest for the consolidated income statement for Year 5 and non-controlling interest for the consolidated statement of financial position at the end of Year 5.

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Retained earnings, beginning of year Profit Dividends Retained earnings, end of year PET $50,000 30,000 (25,000) $55,000 SET $30,000 22,000 (15,000) $37,000