Financial statements of Champlain Ltd. and its 80%-owned subsidiary Samuel Ltd. as at December 31, Year 8, are presented below. STATEMENTS OF FINANCIAL POSITION At December 31, Year 8 Champlain Samuel Property, plant, and equipment $ 199,100 $ 105,100 Accumulated depreciation (84,900 ) (28,900 ) Investment in Samuelat cost 127,400 Inventories 34,300 47,100 Accounts receivable 58,600 56,100 Cash 17,400 20,600 $ 351,900 $ 200,000 Ordinary shares $ 225,000 $ 50,000 Retained earnings 52,700 73,300 Dividends payable 6,100 5,500 Accounts payable 68,100 71,200 $ 351,900 $ 200,000 STATEMENTS OF INCOME AND RETAINED EARNINGS For the Year Ended December 31, Year 8 Champlain Samuel Sales $ 536,500 $ 271,100 Dividend and miscellaneous income 11,000 547,500 271,100 Cost of sales 365,100 208,200 Selling expense 78,400 24,100 Administrative expense (including depreciation and goodwill impairment) 47,400 21,800 Income taxes 14,900 7,300 505,800 261,400 Profit 41,700 9,700 Retained earnings, January 1 31,000 74,600 Dividends paid (20,000 ) (11,000 ) Retained earnings, December 31 $ 52,700 $ 73,300 Additional Information: Champlain acquired 8,000 ordinary shares of Samuel on January 1, Year 4, for $127,400. Samuels shares were trading for $14 per share on the date of acquisition. The retained earnings and accumulated depreciation of Samuel were $13,100 and $19,200, respectively, on that date, and there have been no subsequent changes in the ordinary shares account. On January 1, Year 4, fair values were equal to carrying amounts except for the following: Carrying value Fair value Inventory $ 66,920 $ 33,100 Patent 0 14,000 The patent of Samuel had a remaining legal life of eight years on January 1, Year 4, and any goodwill was to be tested annually for impairment. As a result, impairment losses occurred as follows: Pertaining To: Year 5 Year 7 Year 8 Champlain's purchase $ 23,200 $ 14,900 $ 21,400 Non-controlling interest's share 4,000 3,700 3,600 $ 27,200 $ 18,600 $ 25,000 On January 1, Year 6, Samuel sold equipment to Champlain at a price that was $23,200 in excess of its carrying amount. The equipment had an estimated remaining life of six years on that date. On January 1, Year 8, the inventories of Champlain contained items purchased from Samuel on which Samuel had made a profit of $4,100. During Year 8, Samuel sold goods to Champlain for $94,200, of which $23,200 remained unpaid at the end of the year. Samuel made a profit of $3,300 on goods remaining in Champlains inventory at December 31, Year 8. On July 1, Year 8, Champlain issued $25,000 of ordinary shares to a private investor. Champlain sold a tract of land to Samuel in Year 5 at a profit of $9,200. This land is still held by Samuel at the end of Year 8. Assume a corporate tax rate of 40%. Required: (a) Prepare the following consolidated financial statements: (i) Income statement (Negative values should be indicated with a minus sign. Round your final answers to nearest whole dollar.) (ii) Statement of changes in equity (Input all values as positive numbers. Omit $ sign in your response.) Champlain Ltd. Consolidated Statement of Changes in Shareholders Equity For the Year Ended December 31, Year 8 Ordinary Shares Retained Earnings Balance, Jan. 1, Year 8 $ $ Add: Issued ordinary shares 25000 Less: Profit 21744 $ Less: Dividends Balance, Dec. 31, Year 8 $ $ (iii) Statement of financial position (Amounts to be deducted should be indicated with a minus sign.)