O$$Sullivan Corp. purchased $75\%$ of the outstanding shares of Rabb Ltd$.$ on January $1,$ Year $3,$ at a cost of $$118,560.$ Non$-$controlling interest was valued at $$37,000$ by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $$51,000$ and retained earnings of $$31,000.$ Fair values were equal to carrying amounts for all the net assets except the following:

Carrying Amount Fair Value

Inventory $ $31,000$ $ $19,500$

Equipment $45,20069,500$

Software $15,500$

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 $ $8,200$

Goodwill $24,443$

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 parent$$s share of the goodwill noted above is $$19,353.$

The following are the financial statements of O$$Sullivan Corp. and its subsidiary Rabb Ltd$.$ for Year $6$:

BALANCE SHEETS

At December $31,$ Year $6$

O$$Sullivan Corp. Rabb Ltd$.$

Cash $ $ $10,100$

Accounts receivable $41,00031,000$

Note receivable $41,000$

Inventory $67,00045,000$

Equipment, net $225,00077,000$

Land $155,00031,000$

Investment in Rabb $118,560$

$ $606,560$ $ $235,100$

Bank indebtedness $ $95,000$ $

Accounts payable $71,00061,000$

Notes payable $41,000$

Common shares $151,00051,000$

Retained earnings $248,560123,100$

$ $606,560$ $ $235,100$

STATEMENTS OF RETAINED EARNINGS

Year ended December $31,$ Year $6$

O$$Sullivan Corp. Rabb Ltd$.$

Retained earnings, January $1,$ Year $6$ $ $158,000$ $ $97,000$

Net income $121,92548,000$

Dividends $(31,365)(21,900)$

Retained earnings, December $31,$ Year $6$ $ $248,560$ $ $123,100$

INCOME STATEMENTS

For the year ended December $31,$ Year $6$

O$$Sullivan Corp. Rabb Ltd$.$

Sales $ $822,000$ $ $323,000$

Investment income $16,4254,100$

$838,425327,100$

Cost of sales $481,000201,000$

Administrative expenses $40,50012,500$

Miscellaneous expenses $117,00032,600$

Income taxes $78,00033,000$

$716,500279,100$

Net income $ $121,925$ $ $48,000$

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.$)$

O$$Sullivan Corp.

Statement of Consolidated Retained Earnings

Year ended December $31,$ Year $6$

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$($b$)$ Calculate goodwill impairment loss and non$-$controlling interest on the consolidated income statement for the year ended December $31,$ Year $6,$ under the identifiable net assets method. $($Round intermediate calculations and final answers to whole number. Omit $ sign in your response.$)$

Goodwill impairment loss $

NCI $$ identifiable net assets method