\begin{tabular}{l|r|r|} \hline & Carrying Value & \multicolumn{1}{c|}{ Fair Value } \\ \hline Cash & $25,000 & $25,000 \\ \hline Accounts receivable & 310,000 & 290,000 \\ \hline Inventories & 650,000 & 600,000 \\ \hline Plant and equipment (net) & 2,015,000 & 2,050,000 \\ \hline Total assets & $3,000,000 & 300,000 \\ \hline Current liabilities & $300,000 & 1,100,000 \\ \hline Long-term liabilities & 1,200,000 & \\ \hline Common shares & 500,000 & \\ \hline Retained earnings & 1,000,000 & \\ \hline Total liabilities and shareholders' equity & & \\ \hline \end{tabular} On January 1, Year 3, Silk's plant and equipment had a remaining useful life of 8 years. Its long-term liabilities matured on January 1, Year 7 . Goodwill, if any, is to be tested yearly for impairment. The balance sheets as on December 31 , Year 9 , for the two companies were as follows: The inventories of both companies have a maximum turnover period of one year. Receivables have a maximum turnover period of 62 days. The inventories of both companies have a maximum turnover period of one year. Receivables have a maximum turnover period of 62 days. On July 1, Year 7, Pen sold a parcel of land to Silk for $100,000. Pen had purchased this land in Year 4 for $150,000. On September 30 , Year 9 , Silk sold the property to another company for $190,000. Pen and Silk reported net income of $1,000,000 and $400,000, respectively, for Year 9 . Dividends declared on December 31, Year 9, were as follows: Goodwill impairment tests resulted in losses of $52,200 in Year 4 and $8,700 in Year 9 . Assume a 40% tax rate for both companies and that dividends have not yet been paid. 4. Calculate amortization schedule of required assets and liabilities. (5 marks) 5. Calculate intercompany profitloss after tax. (5 marks) 6. Calculate consolidated retained earnings at January 1, Year 9. (7 marks) 7. Calculate consolidated net income at December 31, Year 9 . (10 marks) 8. Calculate consolidated non-controlling interests at December 31, Year 9. (3 marks) 9. Prepare the balance sheet for Year 9. (12 marks)