Module 1: Self - COW X B Assignments - COWT X @ Self-Assessment and X B Module Learning Acti X M Inbox (843) - daliama X @ AS 7 - ACCG42000D ( X Question 2 - AS 7 - C X + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FI... ad Apps LinkedIn Learning:.. Intermediate Accousimulation managm... Federal Income Tax... https://mail-attach... . Tax Meetings S sheridan works S Sheridan College -.. (16) Slim Thighs &... > > Reading list AS 7 i Saved Help Save & Exit Submit Check my work 2 Financial statements of Par Corp. and its subsidiary Star Inc. on December 31, Year 12, are shown below: BALANCE SHEETS 10 At December 31, Year 12 Par Star points Cash $ 43,000 $ 1, 300 Accounts receivable 103, 006 88, 000 Skipped Inventories 86, 040 51, 000 Land 33, 00 73, 000 Plant and equipment 380, 000 730, 000 Accumulated depreciation (183, 000 (303, 000) Investment in Star common shares 212, 80 Book $ 674, 840 $ 640, 300 Accounts payable 93 , 200 $ 183, 000 Accrued liabilities 8, 300 10, 600 53 , 000 Print Preferred shares Common shares 450, 000 150, 000 Retained earnings 123, 340 243 , 700 $ 674, 840 $ 640, 300 References RETAINED EARNINGS STATEMENTS For the Year Ended December 31, Year 12 Par Star Balance, January 1 $133, 340 $280, 700 Net income (loss) 17,000 (14, 000) 150 , 340 266 , 700 Dividends (000 ' EZ ) (000 ' LZ ) Balance, December 31 $123, 340 $243, 700 Other Information . On January 1, Year 5, the balance sheet of Star showed the following shareholders' equity: $8 cumulative preferred shares, 500 shares issued $ 53,000 Common shares, 2, 000 shares issued 150,000 Mc Graw w X 8:35 AM Type here to search O 17.C Sunny ENG 2021-07-22Module 1: Self - COW X B Assignments - COWT X @ Self-Assessment and X B Module Learning Acti X M Inbox (843) - daliama X @ AS 7 - ACCG42000D ( X Question 2 - AS 7 - C X + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FI... Ad Apps LinkedIn Learning:.. Intermediate Accousimulation managm... Federal Income Tax... https://mail-attach... . Tax Meetings S sheridan works S Sheridan College -... (16) Slim Thighs &... > > Reading list AS 7 i Saved Help Save & Exit Submit Check my work 2 Other Information . On January 1, Year 5, the balance sheet of Star showed the following shareholders' equity: 10 points Skipped $8 cumulative preferred shares, 500 shares issued $ 53, 000 Common shares, 2, 000 shares issued 150, 000 Deficit (Note 1) 080 's8) $120, 000 Book Note 1: Dividends on preferred shares are two years in arrears. On this date, Par acquired 1,400 common shares of Star for a cash payment of $212,800. Print The fair values of Star's identifiable net assets differed from carrying amounts only with respect to the following: References Carrying Fair value amount Accounts receivable $ 37,000 $ 35,000 Inventory 47,000 54 , 000 Plant 510, 006 560,000 Long-term liabilities 304 , 000 324, 000 The plant had an estimated remaining useful life of five years on this date, and the long-term liabilities had a maturity date of December 30, Year 12. Any goodwill is to be tested annually for impairment. . Both Par and Star make substantial sales to each other at an intercompany selling price that yields the same gross profit as the sales they make to unrelated customers. Intercompany sales in Year 12 were as follows: Par to Star $ 220,000 Star to Par 339,000 - nuIring VAOr 12 Dar killed Ctar donnn n - At inae And Car had maid for all n - aurant far Mc Graw Type here to search O 9 W X 8:35 AM 17.C Sunny ENG 2021-07-22Module 1: Self - COW X B Assignments - COWT X @ Self-Assessment and X B Module Learning Acti X M Inbox (843) - daliama X @ AS 7 - ACCG42000D ( X Question 2 - AS 7 - C X + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FI... Ad Apps LinkedIn Learning:.. Intermediate Accousimulation managm... Federal Income Tax... https://mail-attach... . Tax Meetings S sheridan works S Sheridan College -.. (16) Slim Thighs &... > > Reading list AS 7 i Saved Help Save & Exit Submit Check my work 2 The plant had an estimated remaining useful life of five years on this date, and the long-term liabilities had a maturity date of December 30, Year 12. Any goodwill is to be tested annually for impairment. . Both Par and Star make substantial sales to each other at an intercompany selling price that yields the same gross profit as the sales 10 they make to unrelated customers. Intercompany sales in Year 12 were as follows: points Skipped Par to Star 000'027 $ Star to Par 339 , 000 eBook . During Year 12, Par billed Star $2,000 per month in management fees. At year-end, Star had paid for all months except for December. . The January 1, Year 12, inventories of the two companies contained unrealized intercompany profits as follows: Print Inventory of Par $ 17, 000 References Inventory of Star 16, 000 . The December 31, Year 12, inventories of the two companies contained unrealized intercompany profits as follows: Inventory of Par $ 38,000 Inventory of Star 40, 000 On July 1, Year 7, Star sold equipment to Par for $62,000. The equipment had a carrying amount in the records of Star of $42,000 on this date and an estimated remaining useful life of five years. Goodwill impairment losses were recorded as follows: Year 7, $76,000; Year 9, $47,370; and Year 12, $19,860. Assume a 40% corporate tax rate. . Par has accounted for its investment in Star by the cost method. All dividends in arrears were paid by December 31, Year 11. Mc Graw Type here to search O 9 W X 17.C Sunny 8:36 AM / ENG 2021-07-22Module 1: Self - COW X B Assignments - COWT X @ Self-Assessment and X B Module Learning Acti X M Inbox (843) - daliama X @ AS 7 - ACCG42000D ( X Question 2 - AS 7 - C X + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FI... Ad Apps LinkedIn Learning:.. Intermediate Accousimulation managm... Federal Income Tax... https://mail-attach... . Tax Meetings S sheridan works S Sheridan College -... (16) Slim Thighs &... > > Reading list AS 7 i Saved Help Save & Exit Submit Check my work 2 . The December 31, Year 12, inventories of the two companies contained unrealized intercompany profits as follows: 10 points Inventory of Par $ 38, 006 Skipped Inventory of Star eee'et On July 1, Year 7, Star sold equipment to Par for $62,000. The equipment had a carrying amount in the records of Star of $42,000 on eBook this date and an estimated remaining useful life of five years. . Goodwill impairment losses were recorded as follows: Year 7, $76,000; Year 9, $47,370; and Year 12, $19,860. . Assume a 40% corporate tax rate. Print . Par has accounted for its investment in Star by the cost method. . All dividends in arrears were paid by December 31, Year 11. References Required: (a) Prepare, with all necessary calculations, the following (i) Year 12 consolidated retained earnings statement. (Input all amounts as positive values. Omit $ sign in your response.) Par Corp. Consolidated Retained Earnings Statement Year Ended December 31, Year 12 Balance January 1 Net loss Dividends Balance December 31 $1 (ii) Consolidated balance sheet as at December 31, Year 12. Par Corp. Mc Graw Type here to search O w X 17.C Sunny 8:36 AM / ENG 2021-07-22Module 1: Self - COW X B Assignments - COWT X B Self-Assessment and X B Module Learning Acti X M Inbox (843) - daliama X B AS 7 - ACCG42000D ( X Question 2 - AS 7 - C X + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FI... Ad : Apps LinkedIn Learning:.. Intermediate Accousimulation managm... Federal Income Tax... https://mail-attach... . Tax Meetings S sheridan works S Sheridan College -... (16) Slim Thighs &... > > Reading list AS 7 i Saved Help Save & Exit Submit Check my work 2 viviaenas Balance December 31 $ 10 (ii) Consolidated balance sheet as at December 31, Year 12. points Skipped Par Corp. Consolidated Balance Sheet as at December 31, Year 12 Assets Book Print References $ Liabilities and Equity $ Mc Graw Type here to search O w X 17.C Sunny 8:36 AM / ENG 2021-07-22Module 1: Self - COW X B Assignments - COWT X @ Self-Assessment and X B Module Learning Acti X M Inbox (843) - daliama X @ AS 7 - ACCG42000D ( X Question 2 - AS 7 - C X + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FI... Ad Apps LinkedIn Learning:.. Intermediate Accousimulation managm... Federal Income Tax... https://mail-attach... . Tax Meetings S sheridan works S Sheridan College -.. (16) Slim Thighs &... > > Reading list AS 7 i Saved Help Save & Exit Submit Check my work 2 $ 10 Liabilities and Equity points Skipped eBook $ Print References (b) How would the return on equity attributable to Par's shareholders for Year 12 change if Star's preferred shares were non-cumulative instead of cumulative? O No Change O Change (c) On January 1, Year 13, Star issued common shares for $100,000 in cash. Because Par did not purchase any of these shares, Par's ownership percentage declined from 70 to 56%. Calculate the gain or loss that would be charged or credited to consolidated shareholders' equity as a result of this transaction. (Input all amounts as positive values. Round intermediate calculations and final answer to nearest dollar amount. Omit $ sign in your response. (Click to select) v Mc Graw Type here to search O 9 W X 17.C Sunny 8:36 AM x ENG 2021-07-22