Brand X Inc. purchased an $80\%$ interest in Brand Y Inc. for $$350,000$ on January $1,2001.$ On that

date, Brand Y Inc had common stock and retained earnings worth $$180,000$ and $$20,000,$

respectively. Goodwill is tested annually for impairment. At the date of acquisition, Brand Y$\text{'}$s assets

and liabilities were assessed for fair value as follows:

The Balance Sheets of both Companies, as at December $31,2001$ are disclosed below:

The net incomes for Brand X and Brand Y for the year ended December $31,2001$ were $$1,000$ and

$$48,000$ respectively. An impairment test conducted on December $31,2001$ revealed that the

Goodwill should actually have a value $$2,000$ lower than the amount computed on the date of

acquisition. Both companies use a FIFO system, and Brand Y$\text{'}$s inventory on the date of acquisition

was sold during the year. Brand $x$ did not declare any dividends during the year. However, Brand $Y$

paid $$51,000$ in dividends to make up for several years in which the company had never paid any

dividends. Brand Y$\text{'}$s equipment and patent have useful lives of $10$ years and $6$ years respectively

from the date of acquisition. All bonds payable mature on January $1,2006.$

Required:

Prepare Brand X$\text{'}$s Consolidated Balance Sheet as at December $31,2001.$