On December $31,$ Year $2,$ Palm Inc. purchased $80\%$ of the outstanding ordinary shares of Storm Company for $$370,000.$ At that date,

Storm had ordinary shares of $$260,000$ and retained earnings of $$66,000.$ In negotiating the purchase price, it was agreed that the

assets on Storm's statement of financial position were fairly valued except for plant assets, which had a $$46,000$ excess of fair value

over carrying amount. It was also agreed that Storm had unrecognized intangible assets consisting of trademarks that had an

estimated value of $$42,000.$ The plant assets had a remaining useful life of eight years at the acquisition date and the trademarks

would be amortized over a $12-$year period. Any goodwill arising from this business combination would be tested periodically for

impairment. Palm accounts for its investment using the cost method.

Financial statements for Palm and Storm for the year ended December $31,$ Year $6,$ were as follows: Additional Information

At December $31,$ Year $6,$ an impairment test of Storm's goodwill revealed the following:

An impairment test indicated that the trademarks had a recoverable amount of $$14,650.$ The impairment loss on these assets

occurred entirely in Year $6.$

On December $26,$ Year $6,$ Palm declared dividends of $$42,000,$ while Storm declared dividends of $$26,000.$

Amortization expense is reported in selling expenses, while impairment losses are reported in other expenses. Required:

$($a$)$ Prepare consolidated financial statements. $($Input all values as positive numbers.$)$

Answer is not complete. Palm Inc.

Consolidated Statement of Financial Position As at December $31,$ Year $6$

$\backslash$table$[[$Assets$,,],[$Plant assets,$,$$$533,000$C$],[$Trademarks$,,14,650$vv$],[$Goodwill$,,40,000\backslash$times $],[$Investments$,,116,000],[$Notes receivable,$,16,000],[$Inventory$,$:$\text{'},400,000],[$Accounts receivable,$,284,000$vv$],[$Cash$,,64,000$x$],[,,$$$1,467,650],[$Liabilities and Equity,,$],[$Ordinary shares,:$\text{'},$$$560,000$C$],[$Retained earnings,$,236,920\backslash$times $],[$Non$-$controlling interest,$,112,730\backslash$times $],[$Notes payable,$,290,000$vv$],[$Other current liabilities,$,72,000],[$Accounts payable,$2,196,000],[,,$$$1,467,650]]($b$)$ Assuming that none of the acquisition differential had been allocated to trademarks at the date of acquisition complete the table

given below. $($Leave no cells blank $-$ be certain to enter $"$O$"$ wherever required. Negative amount should be indicated by a minus

sign. Omit $ sign in your response.$)$