I just need help with figuring out the parts highlighted in red and are marked incorrect

On Janusry 1, Yeor 4, Gront Corporation bought 1,000 (80\%) of the outstanding common shares of Devy Company for $8,750 cosh. Devy's shores were troding for $7 per share on the dote of acquisition. On that date, Devy hod $3,125 of common shores outstanding and $3,750 retsined earnings. Also on that dote, the carrying amount of esch of Devy's identifisble sssets and lisbilities was equal to its fair value except for the following: The potent had on estimated useful life of five years at Jonuory 1, Year 4, and the entire inventory wos sold during Year 4. Grant uses the cost method to occount for its investment. The following are the seporste-entity finuncial statements of Grant and Devy as at December 31, Year 7: Additional Information The recoverable smount for goodwill was determined to be $1,250 on December 31 , Year 7 . The goodwill impsirment loss occurred in Year 7 . Gront's sccounts receivable contsins $3,750 owing from Devy. Amortization expense is grouped with distribution expenses ond impoirment losses are grouped with other expenses. Required: (a) Colculate consolidated retained eornings st December 31, Year 7 . (Input all values as positive numbers. Omlt $ and % sign In your response.) (b) Prepore consolidated financial statements for Yeor 7 . (Input all values as positlve numbers.)