Foxx Corp. purchased 75% of the outstanding shares of Rabb Ltd. on January 1, Year 3, at a cost of $154,160. Non-controlling interest was valued at $57,000 by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $61,000 and retained earnings of $41,000. Fair values were equal to carrying amounts for all the net assets except the following: Carrying Amount $41,000 47,200 Inventory Equipment Software Fair Value $ 24,500 74,500 20,500 The equipment had an estimated remaining useful life of six years on January 1, Year 3, and the software was to be amortized over ten years. Foxx uses the cost method to account for its investment. The testing for impairment at December 31, Year 6, yielded the following fair values: Software Goodwill $ 10,200 76,432 The impairment loss on these assets occurred entirely in Year 6. Amortization expense is grouped with administrative expenses, and impairment losses are grouped with miscellaneous expenses. The parent's share of the goodwill noted above is $53,191. The following are the financial statements of Foxx Corp. and its subsidiary Rabb Ltd. for Year 6: BALANCE SHEETS At December 31, Year 6 Foxx Corp Cash $ Accounts receivable 51,000 Note receivable Inventory 77,000 Equipment, net 275,000 Land 205,000 Investment in Rabb 154,160 $ 762,160 Bank indebtedness $ 145,000 Accounts payable 81,000 Notes payable 51,000 Common shares 161,000 Retained earnings 324,160 $ 762,160 Rabb Ltd. $ 11.100 41,000 51,000 55,000 87,000 41,000 $ 286,100 $ 71,000 61,000 154,100 $ 286,100 STATEMENTS OF RETAINED EARNINGS Year ended December 31, Year 6 Foxx Corp. Retained earnings, January 1, Year 6 $ 208,000 Net income 153,175 Dividends (37,015) Retained earnings, December 31, Year 6 $ 324,160 Rabb Ltd. $ 147,000 48,000 (40.900) $ 154,100 INCOME STATEMENTS For the year ended December 31, Year 6 Foxx Corp Sales $832.000 Investment income 30,675 862.675 Cost of sales 491,000 Administrative expenses 45,500 Miscellaneous expenses Income taxes 58,000 709,500 Net income $153,175 Rabb Ltd. $ 353,000 9.100 362,100 211,000 17.500 42,600 43.000 314.100 $ 48,000 115,000 Additional Information The notes payable are intercompany. Required: (a) Prepare the Year 6 consolidated financial statements. (Input all values as positive numbers. Leave no cells blank - be certain to enter "0" wherever required. Round your intermediate computations to nearest whole dollar value. Omit $ sign in your response. The balance sheet total may vary due to rounding.) Foxx Corp. Consolidated Income Statement For the year ended December 31, Year 6 0 Attributable to Foxx's shareholders Non-controlling interest Foxx Corp. Statement of Consolidated Retained Earnings Year ended December 31, Year 6 (Click to select) (Click to select) (Click to select) (Click to select) Foxx Corp Consolidated Balance Sheet At December 31, Year 6 Assets $ 0 Liabilities and Equity $ (b) Calculate goodwill impairment loss and non-controlling interest on the consolidated income statement for the year ended December 31, Year 6, under the identifiable net assets method. (Round intermediate calculations and final answers to whole number. Omit $ sign in your response.) Goodwill impairment loss NCI - identifiable net assets method (c) Not available in Connect. Foxx Corp. purchased 75% of the outstanding shares of Rabb Ltd. on January 1, Year 3, at a cost of $154,160. Non-controlling interest was valued at $57,000 by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $61,000 and retained earnings of $41,000. Fair values were equal to carrying amounts for all the net assets except the following: Carrying Amount $41,000 47,200 Inventory Equipment Software Fair Value $ 24,500 74,500 20,500 The equipment had an estimated remaining useful life of six years on January 1, Year 3, and the software was to be amortized over ten years. Foxx uses the cost method to account for its investment. The testing for impairment at December 31, Year 6, yielded the following fair values: Software Goodwill $ 10,200 76,432 The impairment loss on these assets occurred entirely in Year 6. Amortization expense is grouped with administrative expenses, and impairment losses are grouped with miscellaneous expenses. The parent's share of the goodwill noted above is $53,191. The following are the financial statements of Foxx Corp. and its subsidiary Rabb Ltd. for Year 6: BALANCE SHEETS At December 31, Year 6 Foxx Corp Cash $ Accounts receivable 51,000 Note receivable Inventory 77,000 Equipment, net 275,000 Land 205,000 Investment in Rabb 154,160 $ 762,160 Bank indebtedness $ 145,000 Accounts payable 81,000 Notes payable 51,000 Common shares 161,000 Retained earnings 324,160 $ 762,160 Rabb Ltd. $ 11.100 41,000 51,000 55,000 87,000 41,000 $ 286,100 $ 71,000 61,000 154,100 $ 286,100 STATEMENTS OF RETAINED EARNINGS Year ended December 31, Year 6 Foxx Corp. Retained earnings, January 1, Year 6 $ 208,000 Net income 153,175 Dividends (37,015) Retained earnings, December 31, Year 6 $ 324,160 Rabb Ltd. $ 147,000 48,000 (40.900) $ 154,100 INCOME STATEMENTS For the year ended December 31, Year 6 Foxx Corp Sales $832.000 Investment income 30,675 862.675 Cost of sales 491,000 Administrative expenses 45,500 Miscellaneous expenses Income taxes 58,000 709,500 Net income $153,175 Rabb Ltd. $ 353,000 9.100 362,100 211,000 17.500 42,600 43.000 314.100 $ 48,000 115,000 Additional Information The notes payable are intercompany. Required: (a) Prepare the Year 6 consolidated financial statements. (Input all values as positive numbers. Leave no cells blank - be certain to enter "0" wherever required. Round your intermediate computations to nearest whole dollar value. Omit $ sign in your response. The balance sheet total may vary due to rounding.) Foxx Corp. Consolidated Income Statement For the year ended December 31, Year 6 0 Attributable to Foxx's shareholders Non-controlling interest Foxx Corp. Statement of Consolidated Retained Earnings Year ended December 31, Year 6 (Click to select) (Click to select) (Click to select) (Click to select) Foxx Corp Consolidated Balance Sheet At December 31, Year 6 Assets $ 0 Liabilities and Equity $ (b) Calculate goodwill impairment loss and non-controlling interest on the consolidated income statement for the year ended December 31, Year 6, under the identifiable net assets method. (Round intermediate calculations and final answers to whole number. Omit $ sign in your response.) Goodwill impairment loss NCI - identifiable net assets method (c) Not available in Connect