Foxx Corp. purchased 75% of the outstanding shares of Rabb Ltd. on January 1, Year 3, at a cost of $199,080. Non-controlling interest was valued at $71,000 by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $68,000 and retained earnings of $48,000. Fair values were equal to carrying amounts for all the net assets except the following:

	Carrying Amount			Fair Value
Inventory	$	48,000		$	28,000
Equipment		48,600			78,000
Software					24,000

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	$	11,600
Goodwill		115,605

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 parents share of the goodwill noted above is $83,370.

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.			Rabb Ltd.
Cash	$			$	11,800
Accounts receivable		58,000			48,000
Note receivable					58,000
Inventory		84,000			62,000
Equipment, net		310,000			94,000
Land		240,000			48,000
Investment in Rabb		199,080
	$	891,080		$	321,800
Bank indebtedness	$	180,000		$
Accounts payable		88,000			78,000
Notes payable		58,000
Common shares		168,000			68,000
Retained earnings		397,080			175,800
	$	891,080		$	321,800

STATEMENTS OF RETAINED EARNINGS
Year ended December 31, Year 6
	Foxx Corp.				Rabb Ltd.
Retained earnings, January 1, Year 6	$	243,000			$	182,000
Net income		215,400				57,000
Dividends		(61,320	)			(63,200	)
Retained earnings, December 31, Year 6	$	397,080			$	175,800

INCOME STATEMENTS
For the year ended December 31, Year 6
	Foxx Corp.			Rabb Ltd.
Sales	$	839,000		$	374,000
Investment income		47,400			21,600
		886,400			395,600
Cost of sales		498,000			218,000
Administrative expenses		49,000			21,000
Miscellaneous expenses		80,000			49,600
Income taxes		44,000			50,000
		671,000			338,600
Net income	$	215,400		$	57,000

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. Statement of Consolidated Retained Earnings Year ended December 31, Year 6
(Click to select) Balance December 31 Balance January 1	$
(Click to select) Net loss Net income
(Click to select) Add: Dividends Less: Dividends
(Click to select) Balance January 1 Balance December 31	$

(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.