Consolidated Financial Statements and Goodwill Impairment. Hullett Enterprises acquired Owens, Inc. on January 1, 2021. The $450,000 excess of cost over book value of Owens' net assets was partly attributable to a patent undervalued by $200,000. The patent has a 10-year life. The remaining excess is considered goodwill. The separate financial statements of the two companies for 2025 are presented below. a. Prepare all necessary consolidation entries for 2025 consolidated financial statements. b. Now assume that at year-end a goodwill impairment test is conducted before the consolidated statements are issued. The estimated fair value of the subsidiary is $1,500,000. The fair value of the identifiable net assets is $1,300,000. Prepare any journal entries resulting from the test. Sales revenue Cost of goods sold Gross profit Operating expenses Equity income Net Income Retained Earnings, 1/1/25 Net income Dividends Retained Earnings, 12/31/25 Cash and receivables Inventory Equity investment Property, plant & equipment (Net) Total Assets Accounts payable Accrued liabilities Notes payable Common stock Additional paid-in capital Retained Earnings, 12/31/25 Total Liabilities and Equities Hullett $ 3,307,500 (2,381,400) 926,100 (496,125) 194.725 624.700 $ 3,731,900 624,700 (124,940) $ 4,231.660 $ 1,421,264 1,283,310 1,555,017 6,834,618 $11.094.209 $ 484,218 575,506 1,500,000 515,225 3,787,600 4,231,660 $11.094.209 Owens $1,533,750 (920,250) 613,500 (398,775) 214.725 $ 792,437 214,725 (32,209) 974,953 $ 751,026 457,058 845,608 $2.053.692 $ 146,218 191,207 511,250 102,252 127,812 974,953 $2,053,692