Financial statements of Prog Ltd. and its 80%-owned subsidiary Stool Ltd. as at December 31, Year 8, are presented below. Stool $104,800 (29, 200) STATEMENTS OF FINANCIAL POSITION At December 31, Year 8 Prog Property, plant, and equipment $198,800 Accumulated depreciation (85,200) Investment in Samuel-at cost 127,800 Inventories 34,400 Accounts receivable 58,808 Cash 17,500 $352, 100 Ordinary shares $225,000 Retained earnings 56,500 Dividends payable 5,800 Accounts payable 64,800 $352, 100 46,800 55,800 20,600 $198,800 $ 50,000 72,408 5,500 70,900 $198,800 STATEMENTS OF INCOME AND RETAINED EARNINGS For the Year Ended December 31, Year 8 Sales Dividend and miscellaneous income Stool $270,800 Cost of sales Selling expense Administrative expense (including depreciation and goodwill impairment) Income taxes Prog $536,200 19,708 546,998 364,800 78,400 47,190 14,600 504,900 42,090 34,500 (20,890) $ 56.500 Profit Retained earnings, January 1 Dividends paid Retained earnings, December 31 278, 800 207,600 24,100 21,500 7,200 260,200 18,600 72,888 (11,080) $ 72,400 . Prog acquired 8,000 ordinary shares of Stool on January 1, Year 4, for $127,800. Stool's shares were trading for $14 per share on the date of acquisition. The retained earnings and accumulated depreciation of Stool were $12,800 and $18,600, 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 Fair value value Inventory $62,760 $32,800 Patent 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: Prog's purchase Non-controlling interest's share Year 5 $22,600 4,000 $ 26,600 Year 7 $ 14,600 3,400 $ 18, 800 Year 8 $ 20,800 3,600 $ 24,400 On January 1, Year 6, Stool sold equipment to Prog at a price that was $22,600 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 Prog contained items purchased from Stool on which Stool had made a profit of $3,500. During Year 8, Satool sold goods to Prog for $93,600, of which $22,600 remained unpaid at the end of the year. Samuel made a profit of $3,300 on goods remaining in Champlain's inventory at December 31, Year 8. . On July 1, Year 8, Prog issued $25,000 of ordinary shares to a private investor. Prog sold a tract of land to Stool in Year 5 at a profit of $8,600. This land is still held by Stool at the end of Year 8. Assume a corporate tax rate of 40%. Required: (a) Prepare the following consolidated financial statements: (1) Income statement (Negative values should be indicated with a minus sign. Round your final answers to nearest whole dollar.) Champlain Ltd. Consolidated Income Statement Year 8 Total revenues $ 0 Total expenses $ 0 Attributable to: Shareholders of Champlain Non-controlling interest (11) Statement of changes in equity (Input all values as positive numbers. Omit $ sign in your response.) Prog Ltd. Consolidated Statement of Changes in Shareholders' Equity For the Year Ended December 31, Year 8 Ordinary Retained Shares Earnings (Click to select) + $ $ (Click to select) (Click to select) (Click to select) (Click to select) (iii) Statement of financial position (Amounts to be deducted should be indicated with a minus sign.) Champlain Ltd. Consolidated Statement of Financial Position December 31, Year 8 (iii) Statement of financial position (Amounts to be deducted should be indicated with a minus sign.) Champlain Ltd. Consolidated Statement of Financial Position December 31, Year 8 Total assets $ 0 Total liabilities and shareholders' equity $ 0 Financial statements of Prog Ltd. and its 80%-owned subsidiary Stool Ltd. as at December 31, Year 8, are presented below. Stool $104,800 (29, 200) STATEMENTS OF FINANCIAL POSITION At December 31, Year 8 Prog Property, plant, and equipment $198,800 Accumulated depreciation (85,200) Investment in Samuel-at cost 127,800 Inventories 34,400 Accounts receivable 58,808 Cash 17,500 $352, 100 Ordinary shares $225,000 Retained earnings 56,500 Dividends payable 5,800 Accounts payable 64,800 $352, 100 46,800 55,800 20,600 $198,800 $ 50,000 72,408 5,500 70,900 $198,800 STATEMENTS OF INCOME AND RETAINED EARNINGS For the Year Ended December 31, Year 8 Sales Dividend and miscellaneous income Stool $270,800 Cost of sales Selling expense Administrative expense (including depreciation and goodwill impairment) Income taxes Prog $536,200 19,708 546,998 364,800 78,400 47,190 14,600 504,900 42,090 34,500 (20,890) $ 56.500 Profit Retained earnings, January 1 Dividends paid Retained earnings, December 31 278, 800 207,600 24,100 21,500 7,200 260,200 18,600 72,888 (11,080) $ 72,400 . Prog acquired 8,000 ordinary shares of Stool on January 1, Year 4, for $127,800. Stool's shares were trading for $14 per share on the date of acquisition. The retained earnings and accumulated depreciation of Stool were $12,800 and $18,600, 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 Fair value value Inventory $62,760 $32,800 Patent 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: Prog's purchase Non-controlling interest's share Year 5 $22,600 4,000 $ 26,600 Year 7 $ 14,600 3,400 $ 18, 800 Year 8 $ 20,800 3,600 $ 24,400 On January 1, Year 6, Stool sold equipment to Prog at a price that was $22,600 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 Prog contained items purchased from Stool on which Stool had made a profit of $3,500. During Year 8, Satool sold goods to Prog for $93,600, of which $22,600 remained unpaid at the end of the year. Samuel made a profit of $3,300 on goods remaining in Champlain's inventory at December 31, Year 8. . On July 1, Year 8, Prog issued $25,000 of ordinary shares to a private investor. Prog sold a tract of land to Stool in Year 5 at a profit of $8,600. This land is still held by Stool at the end of Year 8. Assume a corporate tax rate of 40%. Required: (a) Prepare the following consolidated financial statements: (1) Income statement (Negative values should be indicated with a minus sign. Round your final answers to nearest whole dollar.) Champlain Ltd. Consolidated Income Statement Year 8 Total revenues $ 0 Total expenses $ 0 Attributable to: Shareholders of Champlain Non-controlling interest (11) Statement of changes in equity (Input all values as positive numbers. Omit $ sign in your response.) Prog Ltd. Consolidated Statement of Changes in Shareholders' Equity For the Year Ended December 31, Year 8 Ordinary Retained Shares Earnings (Click to select) + $ $ (Click to select) (Click to select) (Click to select) (Click to select) (iii) Statement of financial position (Amounts to be deducted should be indicated with a minus sign.) Champlain Ltd. Consolidated Statement of Financial Position December 31, Year 8 (iii) Statement of financial position (Amounts to be deducted should be indicated with a minus sign.) Champlain Ltd. Consolidated Statement of Financial Position December 31, Year 8 Total assets $ 0 Total liabilities and shareholders' equity $ 0