Large Ltd. purchased 80% of Small Company on January 1, Year 6, for $620,000, when the statement of financial position for Small showed common shares of $430,000 and retained earnings of $130,000. On that date, the inventory of Small was undervalued by $43,000, and a patent with an estimated remaining life of five years was overvalued by $64,000.

Small reported the following subsequent to January 1, Year 6:

	Profit (Loss)	Dividends
Year 6	92,000	28,000
Year 7	(38,000)	13,000
Year 8	93,000	43,000

A test for goodwill impairment on December 31, Year 8, indicated a loss of $19,600 should be reported for Year 8 on the consolidated income statement. Large uses the cost method to account for its investment in Small and reported the following for Year 8 for its separate-entity statement of changes in equity:

Retained earnings, beginning	530,000
Profit	230,000
Dividends	(67,000)
Retained earnings, end	693,000

Required:

(a) Prepare the cost method journal entries of Large for each year (Years 6, 7, and 8).

(b) Compute the following on the consolidated financial statements for the year ended December 31, Year 8:

- (i) Goodwill

- (ii) Non-controlling interest on the statement of financial position

- (iii) Retained earnings, beginning of year

- (iv) Profit attributable to Larges shareholders

- (v) Profit attributable to non-controlling interest