Foxx Corp. purchased 75% of the outstanding shares of Rabb Ltd. on January 1. Year 3, at a cost of $148,600. Non-controlling interest was valued at $55,000 by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $60,000 and retained earnings of $40,000. Fair values were equal to carrying amounts for all the net assets except the following: Inventory Equipment Software Carrying Amount , $ 40,000 47.000 Fair Value $ 24,000 74,000 20,000 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 et December 31, Year 6, yielded the following fair values: Software Goodwill $10,000 71,031 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 $49.262. The following are the financial statements of Foxx Corp. and its subsidiary Rabb Ltd. for Year 6: BALANCE SHEETS At December 31, Tear 6 Foxx Corp. Cash $ Accounts receivable 50,000 Note receivable Inventory 76,000 Equipment, bet 270,000 Land 200,000 Investment in Rabb 148.600 5744,500 Bank Indebtedness $140,000 Accounts payable 80,000 Notes payable 50,000 Common shares 160,000 Retained earnings 314.600 $744,600 Rabb Ltd. $ 11,000 40,000 50,000 54,000 86,000 40,000 281,000 $ 70,000 60,000 151,000 $ 281,000 STATENGENES OF RETAINED EARNINGS Year ended December 31, Year 6 xx Corp. Retained earnings, January 1, Year 6 $ 203,000 Net income 145,250 Dividends (33,650) Retained earnings, December 31, Year 6 $ 314,600 Rabb Ltd. $ 142,000 48,000 (39,000) $ 151,000 INCOME STATEMENTS For the year ended December 31, Year 6 Foxx Corp Rabb Ltd. Sales $831,000 $ 350,000 Investment income 29,250 8,600 860, 250 358, 600 Cost of sales 490,000 210,000 Administrative expenses 45,000 17,000 Miscellaneous expenses 120,000 41,600 Income taxes 60,000 42,000 715,000 310, 600 Net income $145, 250 $ 48,000 Additional Information The notes payable are intercompany. Required: (a) Prepare the Year 6 consolidated financial statements. (Input all values as positive nu enter "0" wherever required. Round your intermediate computations to nearest whole The balance sheet total may vary due to rounding.) Foxx Corp. Consolidated Income Statement For the year ended December 31, Year 6 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) $ For Corp. Consolidated Balance Sheet At December 31, Year Assets 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 Foxx Corp. purchased 75% of the outstanding shares of Rabb Ltd. on January 1. Year 3, at a cost of $148,600. Non-controlling interest was valued at $55,000 by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $60,000 and retained earnings of $40,000. Fair values were equal to carrying amounts for all the net assets except the following: Inventory Equipment Software Carrying Amount , $ 40,000 47.000 Fair Value $ 24,000 74,000 20,000 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 et December 31, Year 6, yielded the following fair values: Software Goodwill $10,000 71,031 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 $49.262. The following are the financial statements of Foxx Corp. and its subsidiary Rabb Ltd. for Year 6: BALANCE SHEETS At December 31, Tear 6 Foxx Corp. Cash $ Accounts receivable 50,000 Note receivable Inventory 76,000 Equipment, bet 270,000 Land 200,000 Investment in Rabb 148.600 5744,500 Bank Indebtedness $140,000 Accounts payable 80,000 Notes payable 50,000 Common shares 160,000 Retained earnings 314.600 $744,600 Rabb Ltd. $ 11,000 40,000 50,000 54,000 86,000 40,000 281,000 $ 70,000 60,000 151,000 $ 281,000 STATENGENES OF RETAINED EARNINGS Year ended December 31, Year 6 xx Corp. Retained earnings, January 1, Year 6 $ 203,000 Net income 145,250 Dividends (33,650) Retained earnings, December 31, Year 6 $ 314,600 Rabb Ltd. $ 142,000 48,000 (39,000) $ 151,000 INCOME STATEMENTS For the year ended December 31, Year 6 Foxx Corp Rabb Ltd. Sales $831,000 $ 350,000 Investment income 29,250 8,600 860, 250 358, 600 Cost of sales 490,000 210,000 Administrative expenses 45,000 17,000 Miscellaneous expenses 120,000 41,600 Income taxes 60,000 42,000 715,000 310, 600 Net income $145, 250 $ 48,000 Additional Information The notes payable are intercompany. Required: (a) Prepare the Year 6 consolidated financial statements. (Input all values as positive nu enter "0" wherever required. Round your intermediate computations to nearest whole The balance sheet total may vary due to rounding.) Foxx Corp. Consolidated Income Statement For the year ended December 31, Year 6 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) $ For Corp. Consolidated Balance Sheet At December 31, Year Assets 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