$315,000 cash. Devy's shares were trading for $7 per share on the date of acquisition. On that date, Devy had $112,500 of common shares outstanding and $135,000 retained earnings. Also on that date, the carrying amount of each of Devy's identifiable assets and liabilities was equal to its fair value except for the following: The patent had an estimated useful life of five years at January 1, Year 4, and the entire inventory was sold during Year 4. Grant uses the cost method to account for its investment. The following are the separate-entity financial statements of Grant and Devy as at December 31, Year 7 : The patent had an estimated useful life of five years at January 1 , Year 4 , and the entire inventory was sold during Year 4. Grant uses the cost method to account for its investment. The following are the separate-entity financial statements of Grant and Devy as at December 31, Year 7 : Additional Information - The recoverable amount for goodwill was determined to be $45,000 on December 31 , Year 7 . The goodwill impairment loss occurred in Year 7. - Grant's accounts receivable contains $135,000 owing from Devy. - Amortization expense is grouped with distribution expenses and impairment losses are grouped with other expenses. Required: (a) Calculate consolidated retained earnings at December 31, Year 7. (Input all values as positive numbers. Omit $ and % sign in your response.) b) Prepare consolidated financial statements for Year 7. (Input all values as positive numbers.) \begin{tabular}{|lr|r|} \hline \multicolumn{3}{|c|}{ Grant Corporation } \\ \hline Consolidated Balance Sheet - December 31 , Year 7 \\ \hline Cass & & \\ \hline Accounts receivable & & \\ \hline Inventory & & \\ \hline Equipment & & \\ \hline Patent & & \\ \hline Goodwill & & \\ \hline & & \\ \hline & & \\ \hline & & $ \\ \hline Liabilities and Equity & & \\ \hline Accounts payable & & \\ \hline Other accrued liabilities & & \\ \hline Income taxes payable & & \\ \hline \end{tabular} $315,000 cash. Devy's shares were trading for $7 per share on the date of acquisition. On that date, Devy had $112,500 of common shares outstanding and $135,000 retained earnings. Also on that date, the carrying amount of each of Devy's identifiable assets and liabilities was equal to its fair value except for the following: The patent had an estimated useful life of five years at January 1, Year 4, and the entire inventory was sold during Year 4. Grant uses the cost method to account for its investment. The following are the separate-entity financial statements of Grant and Devy as at December 31, Year 7 : The patent had an estimated useful life of five years at January 1 , Year 4 , and the entire inventory was sold during Year 4. Grant uses the cost method to account for its investment. The following are the separate-entity financial statements of Grant and Devy as at December 31, Year 7 : Additional Information - The recoverable amount for goodwill was determined to be $45,000 on December 31 , Year 7 . The goodwill impairment loss occurred in Year 7. - Grant's accounts receivable contains $135,000 owing from Devy. - Amortization expense is grouped with distribution expenses and impairment losses are grouped with other expenses. Required: (a) Calculate consolidated retained earnings at December 31, Year 7. (Input all values as positive numbers. Omit $ and % sign in your response.) b) Prepare consolidated financial statements for Year 7. (Input all values as positive numbers.) \begin{tabular}{|lr|r|} \hline \multicolumn{3}{|c|}{ Grant Corporation } \\ \hline Consolidated Balance Sheet - December 31 , Year 7 \\ \hline Cass & & \\ \hline Accounts receivable & & \\ \hline Inventory & & \\ \hline Equipment & & \\ \hline Patent & & \\ \hline Goodwill & & \\ \hline & & \\ \hline & & \\ \hline & & $ \\ \hline Liabilities and Equity & & \\ \hline Accounts payable & & \\ \hline Other accrued liabilities & & \\ \hline Income taxes payable & & \\ \hline \end{tabular}