\begin{tabular}{c} Pearl Company \\ Consolidated Income Statement \\ For the Year Ended December 31, Year 6 \\ \hline Sales \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Accounts receivable Inventory Plant and equipment Accumulated depreciation Investment in Silver Company (at cost) Liabilities Common shares Retained earnings 430,090 3,150,000 4,150,000 (98,0) INCOME STATEMENT Sales Dividend income Cost of sales Miscellaneous expenses Administrative expense Income tax expense Net income \begin{tabular}{|r|r|} \hline 5,150,000344,000 & $2,150,000 \\ \hline 5,494,000 & 2,150,000 \\ \hline 2,730,000 \\ 435,000 \\ 103,000 \\ 1365,000 \\ \hline (3,633,000)$1,861,000 \\ \hline \end{tabular} RETAINED EARNINGS STATEMENT Balance, January 1 Net incose Dividends Balance, December 31 \begin{tabular}{|r|r|} $5,200,000 & $1,030,000 \\ 1,861,000 & 1,159,000 \\ \hline 7,061,000 & (730,000)2,189,000 \\ \hline$6,331,000 & $1,759,000(430,000) \\ \hline \end{tabular} Additional Information Pearl purchased 80% of the outstanding voting shares of Silver for $4,700,000 on July 1 , Year 2 , at which time Silver's retained earnings were $515,000, and accumulated depreciation was $83,000. The acquisition differential on this date was allocated as follows: - 20% to undervalued inventory - 40% to equipment-remaining useful life 8 years - Balance to goodwill During Year 3, a goodwill impairment loss of $93,000 was recognized, and an impairment test conducted as at December 31 , Year 6 . indicated that a further loss of $43,000 had occurred. Amortization expense is grouped with cost of goods sold and impairment losses are grouped with administrative expenses. Silver owes Pearl $98,000 on December 31, Year 6. Required: (a) Prepare consolidated financial statements on December 31, Year 6. (Input oll amounts as positive values except accumulated depreciation which should be indicoted by minus sign. Omit \$ sign in your response.) b) Calculate goodwill impairment loss and non-controlling interest on the consolidated income statement for the year ended December 31, Year 6. under the identifiable net assets method, (Omit \$ sign in your response.) (c) Calculate goodwill and non-controlling interest on the consolidated balance sheet at December 31, Year 6. under the identifiable net assets method. (Omit \$ sign in your response.) (d) Prepare the consolidated financial statements using the worksheet approach. (Input all amounts as positive values except occumulated depreciotion which should be indicated by minus sign. All values in the "Entry" columns should be entered as positive values. For occounts where multiple adjusting entries ore required, combine all debit entries into one amount and enter this omount in the debit column of the worksheet. Similarly, combine oll credit entries into one amount and enter this amount in the credit column of the worksheet. Leave no cells blank - be certain to enter " 0 " wherever required. Omit \$ sign in your response.) Pearl Company Consolidated Retained Earnings Statement For the Year Ended December 31, Year 6 \begin{tabular}{|c|c|} \hline Balance Jan. 1 & \\ \hline Net income & \\ \hline \end{tabular} Less: Dividends Balance Dec. 31