of Little Company for $$1,500,000.$ On January $1,$

On _s Of Little Cornpany S SOOOOO. On Jam.ary . Year 3. aSSOtS and O' Little Company had tho book and values: Timo On January 1 , Year 3, the equipment had a remaining lite ot 10 years. During Year 3. the inventory on hand January 1, Year 3, was all sold. Big uses the Entity Theory and the cost method to account for its investment in Little. On December 31 , Year 6. the Income Statements and Balance Sheets for both companies were as follows: Year 6 uses cost srment n 6. Shoe's both AS 31. with Quiz pnunt, net Vestment in Little information : lett 2 S' 03 Little Qu Quiz s20SXX) 5 Year 6 t _ During 5 6, Little inventory to Big a mamo cost as 'olbwS: 2. Big tested annually 'or impairment With the Year 3 and Year 4 impairment Year 5 Year 6 so $20,000 $30,000 3. On January t, Year 5, Big sold equipment to Little tor 00.000 3. On Jamiary Year 5. soul eq._onent to cash, n had a an a 5 with residua were paid ASSumo a tax both years. Required: a. CaWatO (2 nwks) b. proare an Equisitbn differential arnortization and goodwill impairment schedule tor the period January 1 , Year 3, to Oecember 31. Year 6. (3 marks)