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

STATEMENTS OF FINANCIAL POSITION

At December 31, Year 8ProgStoolProperty, plant, and equipment$198,400$104,400Accumulated depreciation(85,600)(29,600)Investment in Samuelat cost128,400-Inventories34,60046,400Accounts receivable59,20055,400Cash17,70020,600$352,700$197,200Ordinary shares$225,000$50,000Retained earnings61,90071,200Dividends payable5,4005,500Accounts payable60,40070,500$352,700$197,200

STATEMENTS OF INCOME AND RETAINED EARNINGSFor the Year Ended December 31, Year 8ProgStoolSales$535,800$270,400Dividend and miscellaneous income10,300-546,100270,400Cost of sales364,400206,800Selling expense78,40024,100Administrative expense (including depreciation and goodwill impairment)46,70021,100Income taxes14,2006,600503,700258,600Profit42,40011,800Retained earnings, January 139,50070,400Dividends paid(20,000)(11,000)Retained earnings, December 31$61,900$71,200

Additional Information:

• Prog acquired 8,000 ordinary shares of Stool on January 1, Year 4, for $128,400. Stool's shares were trading for $14 per share on the date of acquisition. The retained earnings and accumulated depreciation of Stool were $12,400 and $17,800, 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

valueFair

valueInventory$56,880$32,400Patent014,000

• 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 5Year 7Year 8Prog's purchase$21,800$14,200$20,000Non-controlling interest's share4,0003,0003,600$25,800$17,200$23,600

• On January 1, Year 6, Stool sold equipment to Prog at a price that was $21,800 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 $2,700. During Year 8, Satool sold goods to Prog for $92,800, of which $21,800 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 $7,800. 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.)

(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' EquityFor the Year Ended December 31, Year 8Ordinary

SharesRetained

Earnings

(Click to select)

Balance, Dec. 31, Year 8

Balance, Jan. 1, Year 8

$$

(Click to select)

Add: Issued ordinary shares

Less: Issued ordinary shares

(Click to select)

Add: Profit

Less: 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$Non-controlling interest$