Foxx Corp. purchased 75% of the outstanding shares of Rabb Ltd. on January 1, Year 3, at a cost of $183,960. Non-controlling interest was valued at $67,000 by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $66,000 and retained earnings of $46,000. Fair values were equal to carrying amounts for all the net assets except the following:

	Carrying Amount			Fair Value
Inventory	$	46,000		$	27,000
Equipment		48,200			77,000
Software					23,000

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	$	11,200
Goodwill		104,162

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 $73,942.

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	$			$	11,600
Accounts receivable		56,000			46,000
Note receivable					56,000
Inventory		82,000			60,000
Equipment, net		300,000			92,000
Land		230,000			46,000
Investment in Rabb		183,960
	$	851,960		$	311,600
Bank indebtedness	$	170,000		$
Accounts payable		86,000			76,000
Notes payable		56,000
Common shares		166,000			66,000
Retained earnings		373,960			169,600
	$	851,960		$	311,600

STATEMENTS OF RETAINED EARNINGS
Year ended December 31, Year 6
	Foxx Corp.				Rabb Ltd.
Retained earnings, January 1, Year 6	$	233,000			$	172,000
Net income		199,550				57,000
Dividends		(58,590	)			(59,400	)
Retained earnings, December 31, Year 6	$	373,960			$	169,600

INCOME STATEMENTS
For the year ended December 31, Year 6
	Foxx Corp.			Rabb Ltd.
Sales	$	837,000		$	368,000
Investment income		44,550			20,600
		881,550			388,600
Cost of sales		496,000			216,000
Administrative expenses		48,000			20,000
Miscellaneous expenses		90,000			47,600
Income taxes		48,000			48,000
		682,000			331,600
Net income	$	199,550		$	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 January 1 Balance December 31	$
(Click to select) Net income Net loss
(Click to select) Less: Dividends Add: Dividends
(Click to select) Balance December 31 Balance January 1	$