08-10 (LO2) On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $780,000. On January 1, Year 6, Pic Company acquired an additional 2,000 ordinary shares of Sic Company for $201,000. On January 1, Year 5, the shareholders' equity of Sic was as follows: Ordinary shares (10,000 no par value shares issued) Retained earnings $200,000 318,000 $518,000 The following are the statements of retained earnings for the two companies for Years 5 and 6: Retained earnings, beginning of year Profit Dividends Retained earnings, end of year Year 5 $ 536,000 147,500 (100,000) $ 583,500 Pic Year 6 $ 583,500 177,500 (120,000) Year 5 $318,000 Sic Year 6 $333,500 105,500 181,500 (90,000) (90,000) $ 641,000 $333,500 $425,000 Additional Information . Pic uses the cost method to account for its investment in Sic. Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 3 Year 7. Neither company has any customer contracts recorded on their separate-entity records. There were no unrealized profits from intercompany transactions since the date of acquisition. Required: (a) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit $ sign in your response.) Consolidated profit attributable to Pic's shareholders $144425 (b) Calculate the following account balances for the consolidated statement of financial position at December 31, Year 6: (Omit $ sign in your response.) (i) Customer contracts (ii) Non-controlling interest (iii) Retained earnings $ 174000 $ 21250 $737250