1. Bonds payable Common shares Retained earnings Total liabilities and equity 260,000 900,000 1.169,040 $2,679,040 70,000 180,000 58,000 $640,000 An impairment test conducted in September 2021 on Sammy's goodwill resulted in an impairment loss of $10,000 being recorded. Both companies use a FIFO system, and Morgan 's entire inventory on the date of acquisition was sold during the following year. During 2023, Morgan borrowed $20,000 in cash from Sammy interest free to finance its operations. As of June 30, 2023, the amount remained unpaid. Required: Calculate the following: Sammy uses the equity method to account for its investment in Morgan. Assume that the fair value enterprise (FVE) method applies. A. The amount of non-controlling interest on Sammy's consolidated balance sheet on July 1, 2020? B. depreciation expense appearing on Big Guy's June 30, 2023 consolidated income statement? C. interest expense appearing on Sammy's June 30, 2023 consolidated income statement? D. consolidated net income attributable to the shareholders of Sammy appearing on consolidated income statement on June 30, 2023? E. The amount of non-controlling interest that would appear on Sammy's June 30, 2023 consolidated income statement? F. The amount that would appear as Big Guy's investment in Morgan Corp on its June 30, 2023 consolidated balance sheet? G. The value of goodwill that would appear on Big Guy's consolidated balance sheet as at June 30, 2023? H. the correct amount that would appear on Sammy's consolidated balance sheet for equipment as at June 30, 2023? The amount of current liabilities that would appear on Sammy's consolidated balance sheet as at June 30, 2023? J. Assume the non-controlling interest is measured using the identifiable net assets (INA) method, what amount of non-controlling interest that would appear on Big Sammy's K. The amount of common shares that would appear on Sammy's consolidated balance sheet on June 30, 2023?

- An impairment test conducted in September 2021 on Sammy's goodwill resulbed in an impairment loss of $10,000 being recorded Both companies use a FIFO system, and Morgan 'b entire inventory on the date of acquisition was sold during the following year During 2023, Morgan borrowed $20.000 in cash from Sammy interest free to finance its oporations. As of June 30, 2023, the amount remainod unpaid Sammy uses the equity mothod to account for its invostment in Morgan. Assume that the fair value enterprise (AVE) method applies: Required: Calculate the following: A. The amount of non-controlling interest on Sammy/s cocisolidated balance sheet on July 1: 2020? B. depreciation expense appearing on Big Guy's June 30,2023 consoldated income statement? C. interest expense appearing on Sammy's June 30, 2023 consolidated incorne staternurt? D. consolidated net income attrbutable to the shareholders of Sammy appearing on consolidated income statement or June 30,2023 ? E. The amount of non-controling interest that would appear on Sammy/s June 30, 2023 consolidated income statement? F. The amount that would appear as Big Gty/s investment in Morgan Cotp on its June 30, 2023 consoldated balance sheet? G. The value of goodwill that would appear on Big Guy's consolidated balance sheet as at 3 une 30,2023 ? H. the correct amount that would appear on Sammy's consolidated balance shect for equipment as at June 30,2023 ? 1. The amount of current liabilities that would appear on Sammy's consolidated balance sheet as at June 30,2023 ? J. Assume the non-controlling interest is measured using the identifiable net assels (INA) method, what amount of non-controling interest that would appear on Big Sammy's K. The amount of common shares that would appear on Sammy's consolidated balance shact on June 30,2023 ? (b) Assumo that Pendecuses the cost method. (i) Prepare all joumal entries necessary to account for Pender's investment for Year 6 (ii) Determine the correct balance in Pender's investment account at December 34, Year 6 Balance in Pender's investment account (iii) Prepare an income statement for Pender for Year 6. Question Two Sammy Inc. purchased 80% of the outstanding voting shares of Morgan Corp. for $360,000 on July 1, 2020. On that date, Morgan had common shares and retained earnings worth $180,000 and $90,000, respectively. The equipment had a remaining useful life of 5 years from the date of acquisition. Morgan 's bonds mature on July 1,2030 . Both companies use straight line amortization, and no salvage value is assumed for assets. The trademark is assumed to have an indefinite useful life. Goodwill is tested annually for impairment. The balance sheets of both companies, as well as 'e fair market values on the date of acquisition are disclosed below: 200 rowowing are the financial statements for both companies for the fiscal year ended Juno 30 . 2023 : Income Statements: Retained Earnings Statements Balance Sheets