Financial statements of Prog Ltd. and its 80%-owned subsidiary Stool Ltd. as at December 31, Year 8, are presented below.

STATEMENTS OF FINANCIAL POSITION At December 31, Year 8
	Prog				Stool
Property, plant, and equipment	$	198,900			$	104,900
Accumulated depreciation		(85,100	)			(29,100	)
Investment in Samuelat cost		127,700
Inventories		34,400				46,900
Accounts receivable		58,800				55,900
Cash		17,500				20,600
	$	352,200			$	199,200
Ordinary shares	$	225,000			$	50,000
Retained earnings		55,400				72,700
Dividends payable		5,900				5,500
Accounts payable		65,900				71,000
	$	352,200			$	199,200

STATEMENTS OF INCOME AND RETAINED EARNINGS
For the Year Ended December 31, Year 8
	Prog				Stool
Sales	$	536,300			$	270,900
Dividend and miscellaneous income		10,800
		547,100				270,900
Cost of sales		364,900				207,800
Selling expense		78,400				24,100
Administrative expense (including depreciation and goodwill impairment)		47,200				21,600
Income taxes		14,700				7,100
		505,200				260,600
Profit		41,900				10,300
Retained earnings, January 1		33,500				73,400
Dividends paid		(20,000	)			(11,000	)
Retained earnings, December 31	$	55,400			$	72,700

Additional Information:

• Prog acquired 8,000 ordinary shares of Stool on January 1, Year 4, for $127,700. Stool's shares were trading for $14 per share on the date of acquisition. The retained earnings and accumulated depreciation of Stool were $12,900 and $18,800, 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	$	63,980		$	32,900
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
Prog's purchase	$	22,800		$	14,700		$	21,000
Non-controlling interest's share		4,000			3,500			3,600
	$	26,800		$	18,200		$	24,600

• On January 1, Year 6, Stool sold equipment to Prog at a price that was $22,800 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 $3,700. During Year 8, Satool sold goods to Prog for $93,800, of which $22,800 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, 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 $8,800. 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:

(i) Income statement (Negative values should be indicated with a minus sign. Round your final answers to nearest whole dollar.)

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.)

Prog Ltd.
Consolidated Statement of Changes in Shareholders Equity
For the Year Ended December 31, Year 8
	Ordinary Shares	Retained Earnings
(Click to select) Balance, Jan. 1, Year 8 Balance, Dec. 31, Year 8	$	$
(Click to select) Add: Issued ordinary shares Less: Issued ordinary shares
(Click to select) Less: Profit Add: Profit
		$
(Click to select) Add: Dividends Less: Dividends
(Click to select) Balance, Jan. 1, Year 8 Balance, Dec. 31, Year 8	$	$

(iii) Statement of financial position (Amounts to be deducted should be indicated with a minus sign.)

(b) Not available in Connect.

(c) Calculate goodwill and non-controlling interest on the consolidated statement of financial position at December 31, Year 8, under the identifiable net assets method. (Omit $ sign in your response.)

Goodwill	$
Non-controlling interest	$

(d) Not available in Connect.