Financial statements of Par Corp. and its subsidiary Star Inc. on December 31 , Year 12 , are shown below: Other Information - On January 1, Year 5, the balance sheet of Star showed the following shareholders' equity: Note 1: Dividends on preferred shares are two years in arrears. On this date, Par acquired 1,400 common shares of Star for a cash payment of $217,000. The fair values of Star's identifiable net assets differed from carrying amounts only with respect to the following: The plant had an estimated remaining useful life of five years on this date, and the long-term liabilities had a maturity date of December 30 , Year 12. Any goodwill is to be tested annually for impairment. - Both Par and Star make substantial sales to each other at an intercompany selling price that yields the same gross profit as the sales they make to unrelated customers. Intercompany sales in Year 12 were as follows: - During Year 12, Par billed Star $2,000 per month in management fees. At year-end, Star had paid for all months except for December. - The January 1, Year 12, inventories of the two companies contained unrealized intercompany profits as follows: - The December 31, Year 12, inventories of the two companies contained unrealized intercompany profits as follows: - On July 1, Year 7, Star sold equipment to Par for $65,000. The equipment had a carrying amount in the records of Star of $45,000 on this date and an estimated remaining useful life of five years. - Goodwill impairment losses were recorded as follows: Year 7, \$77,500; Year 9, \$48,270; and Year 12, $20,010. - Assume a 40% corporate tax rate. - Par has accounted for its investment in Star by the cost method. - All dividends in arrears were paid by December 31, Year 11. Required: (a) Prepare, with all necessary calculations, the following: (ii) Consolidated balance sheet as at December 31, Year 12. (c) On January 1, Year 13, Star issued common shares for $100,000 in cash. Because Par did not purchase any of these shares, Par's ownership percentage declined from 70 to 56%. Calculate the gain or loss that would be charged or credited to consolidated shareholders' equity as a result of this transaction. (Input all amounts as positive values. Round intermediate calculations and final answer to nearest dollar amount. Omit $ sign in your response.) $ Financial statements of Par Corp. and its subsidiary Star Inc. on December 31 , Year 12 , are shown below: Other Information - On January 1, Year 5, the balance sheet of Star showed the following shareholders' equity: Note 1: Dividends on preferred shares are two years in arrears. On this date, Par acquired 1,400 common shares of Star for a cash payment of $217,000. The fair values of Star's identifiable net assets differed from carrying amounts only with respect to the following: The plant had an estimated remaining useful life of five years on this date, and the long-term liabilities had a maturity date of December 30 , Year 12. Any goodwill is to be tested annually for impairment. - Both Par and Star make substantial sales to each other at an intercompany selling price that yields the same gross profit as the sales they make to unrelated customers. Intercompany sales in Year 12 were as follows: - During Year 12, Par billed Star $2,000 per month in management fees. At year-end, Star had paid for all months except for December. - The January 1, Year 12, inventories of the two companies contained unrealized intercompany profits as follows: - The December 31, Year 12, inventories of the two companies contained unrealized intercompany profits as follows: - On July 1, Year 7, Star sold equipment to Par for $65,000. The equipment had a carrying amount in the records of Star of $45,000 on this date and an estimated remaining useful life of five years. - Goodwill impairment losses were recorded as follows: Year 7, \$77,500; Year 9, \$48,270; and Year 12, $20,010. - Assume a 40% corporate tax rate. - Par has accounted for its investment in Star by the cost method. - All dividends in arrears were paid by December 31, Year 11. Required: (a) Prepare, with all necessary calculations, the following: (ii) Consolidated balance sheet as at December 31, Year 12. (c) On January 1, Year 13, Star issued common shares for $100,000 in cash. Because Par did not purchase any of these shares, Par's ownership percentage declined from 70 to 56%. Calculate the gain or loss that would be charged or credited to consolidated shareholders' equity as a result of this transaction. (Input all amounts as positive values. Round intermediate calculations and final answer to nearest dollar amount. Omit $ sign in your response.) $