I am stuck on this question, If you could please answer this, I would really appreciate it ! (Zooming the page would help with reading the question)And one more question,

(i)Assume that P used the equity method to record its investment in S. What would be the value of the Investment in S account on the Ps separate entity balance sheet at December 31, Year 6.

130,000 100,000 earnings Notes payable Other current liabilities Accounts payable 10,000 On December 31, Year 2, P Inc. purchased 80% of the outstanding ordinary shares of S Com- pany for $310,000. At that date, S had ordinary shares of $200,000 and retained earnings of 0. In negotiating the purchase price, it was agreed that the assets on S's statement of financial position were fairly valued except for plant assets, which had a $40,000 excess of fair value over carrying amount. It was also agreed that S had unrecognized intangible assets consisting of trademarks that had an estimated value of $24,000. The plant assets had a remaining useful life of eight years at the acquisition date and the trademarks would be amortized over a 12-year period. Any goodwill arising from this business combination would be tested periodically for impairment. P accounts for its investment using the cost method. 50,000 80,000 62,000 $ 830,000 $ 562,000 Additional Information: INCOME STATEMENTS For the year ended December 31, Year 6 At December 31, Year 6, an impairment test of S's goodwill revealed its recoverable amount is $50,000 An impairment test indicated that the trademarks had a recoverable amount of $13,750. The impairment loss on these assets (goodwill and trademarks) occurred entirely in Year 6. On December 26, Year 6, P declared dividends of $36,000, while s declared dividends of $20,000. Amortization expense is reported in selling expenses, while impairment losses are reported in other expenses. Sales Cost of goods sold 870,000 (638,000) 515,000 (360,000) $ Gross profit Selling expenses Other expenses Interest and dividend income 232,000 (22,000) (148,000) 155,000 (35,000) (72,000) 2,000 Financial statements for P and S for the year ended December 31, Year 6, were as follows: STATEMENTS OF FINANCIAL POSITION December 31, Year 6 34,000 Profit 96,000 50,000 S 230,000 $ 160,000 310,000 Assets Plant assets, net Investment in Storm Other investments Notes receivable Inventory Accounts receivable Cash 82,000 22,000 10,000 180,000 100,000 88,000 160,000 30,000 Required: a) Calculate the acquisition differential, goodwill and non-controlling interest at acquisition date, December 31, Year 2. Prepare the acquisition eliminating entry at acquisition date on the consolidation worksheet. b) Prepare the schedule of amortization of acquisition differential and impairment) c) Calculate consolidated net income for the year ended December 31, Year 6. Separate the portion attributable to P and to non-controlling interest. d) Prepare the consolidated income statement for year 6. Show attribution to each shareholder group. e) Calculate the ending balance of consolidated retained earnings at December 31, Year 6. f) Calculate the ending balance of non-controlling interest that would appear on the consolidated balance sheet at December 31, Year 6 g) Calculate the balance of "Plant Assets @net" that would show on the consolidated balance sheet at December 31, Year 6. h) Calculate the balance of ordinary common) shares on the consolidated balance sheet at December 31, Year 6. 20,000 $ 830,000 $ 562,000 Shareholders' Equity and Liabilities Ordinary shares Retained $ $ 500,000 110,000 200,000 150,000 130,000 100,000 earnings Notes payable Other current liabilities Accounts payable 10,000 On December 31, Year 2, P Inc. purchased 80% of the outstanding ordinary shares of S Com- pany for $310,000. At that date, S had ordinary shares of $200,000 and retained earnings of 0. In negotiating the purchase price, it was agreed that the assets on S's statement of financial position were fairly valued except for plant assets, which had a $40,000 excess of fair value over carrying amount. It was also agreed that S had unrecognized intangible assets consisting of trademarks that had an estimated value of $24,000. The plant assets had a remaining useful life of eight years at the acquisition date and the trademarks would be amortized over a 12-year period. Any goodwill arising from this business combination would be tested periodically for impairment. P accounts for its investment using the cost method. 50,000 80,000 62,000 $ 830,000 $ 562,000 Additional Information: INCOME STATEMENTS For the year ended December 31, Year 6 At December 31, Year 6, an impairment test of S's goodwill revealed its recoverable amount is $50,000 An impairment test indicated that the trademarks had a recoverable amount of $13,750. The impairment loss on these assets (goodwill and trademarks) occurred entirely in Year 6. On December 26, Year 6, P declared dividends of $36,000, while s declared dividends of $20,000. Amortization expense is reported in selling expenses, while impairment losses are reported in other expenses. Sales Cost of goods sold 870,000 (638,000) 515,000 (360,000) $ Gross profit Selling expenses Other expenses Interest and dividend income 232,000 (22,000) (148,000) 155,000 (35,000) (72,000) 2,000 Financial statements for P and S for the year ended December 31, Year 6, were as follows: STATEMENTS OF FINANCIAL POSITION December 31, Year 6 34,000 Profit 96,000 50,000 S 230,000 $ 160,000 310,000 Assets Plant assets, net Investment in Storm Other investments Notes receivable Inventory Accounts receivable Cash 82,000 22,000 10,000 180,000 100,000 88,000 160,000 30,000 Required: a) Calculate the acquisition differential, goodwill and non-controlling interest at acquisition date, December 31, Year 2. Prepare the acquisition eliminating entry at acquisition date on the consolidation worksheet. b) Prepare the schedule of amortization of acquisition differential and impairment) c) Calculate consolidated net income for the year ended December 31, Year 6. Separate the portion attributable to P and to non-controlling interest. d) Prepare the consolidated income statement for year 6. Show attribution to each shareholder group. e) Calculate the ending balance of consolidated retained earnings at December 31, Year 6. f) Calculate the ending balance of non-controlling interest that would appear on the consolidated balance sheet at December 31, Year 6 g) Calculate the balance of "Plant Assets @net" that would show on the consolidated balance sheet at December 31, Year 6. h) Calculate the balance of ordinary common) shares on the consolidated balance sheet at December 31, Year 6. 20,000 $ 830,000 $ 562,000 Shareholders' Equity and Liabilities Ordinary shares Retained $ $ 500,000 110,000 200,000 150,000