On April 1^st. Year 2017, X Company purchased 80% of the Y Company for $1,000,000.

At that date the common shares of Y was $450,000 and retained earnings $ 525,000

At this date the book values and fair values of the assets and liabilities of the Y Company were equal to their fair values except for the following items.

Book Value..................Fair Value

Plant andequipment...........................................60,000..........................80,000

Accountsreceivable.............................................40,000............................50,000

Inventories...........................................................80,000...........................45,000

Accountspayable...............................................50,000...........................55,000

The plant andequipment hada remaining useful life of 10 years.

Goodwill testing resulted in impairment in goodwill in 2019 of$60,000 and $35,000 in 2020.

The financial statements for the two companies for the year ended December 31, 2020 were as follows:-

X......................................Y.........

Assets:-

Cash...............................................................$12,000..........................$25,000

Accounts receivable.....................................200,000............................230,000

Inventories.....................................................185,000.......................... 250,000

Capital assets,net........................................1,445,000...........................840,000

Investment in the Y Company.....................1,000,000.....................................

TOTAL ASSETS..........................................$ 2,842,000......................$1,345,000

Liabilities & Owners' Equity:-

Accountspayable........................................$240,000.......................$130,000

Otherliabilities..............................................320,000............................65,000

Common Shares..........................................1,200,000...................... .... 450,000

Retained Earnings..........................................1,082,000.........................700,000

TOTAL LIABILITIES & OWNERS' EQUITY.$ 2,842,000......................$1,345,000

Sales..................................................................$2,900,000..................$955,000

Dividends............................................................64,000

Cost of goods sold.............................................1,500,000.....................545,000

Gross Margin.....................................................1,464,000......................410,000

Amortization Expense.......................................... 245,000................... .90,000

Otherexpenses....................................................130,000..................... .30,000

Dividends..............................................................400,000.....................80,000

Income Taxes......................................................185,000.......................21,000

NET INCOME AFTER TAXES...............................$504,000....................$189,000

Additional Information:-

i.On September 1^st. 2018, Y purchased a machine from X for $52,000.The machine had a net book value of $40,000 and an estimated useful life of 8 years at the time of the sale to Y.

ii.The 2020 opening inventories of X contained $50,000 of merchandise purchased from Y during 2019. Y had recorded a profit of $20,000 on these sales.

iii.During 2020, Y sales to X totaled $24,000.These sales were made at a 20% mark up on cost.

iv.During 2020, X sales to Y totaled $50,000.Y's ending inventories in 2020 contained $30,000 of merchandise purchase from X.X charges Y a 10% mark up on sales.

v.Both companies use a 40% tax rate.

Required_

f.Calculate consolidated net income for the year ending December 31^st2020( 8 marks)

g.What is the net income attributable to non-controlling interest (1 mark)