On December 31, 2015, the Leaf Company purchased 60% of the outstanding voting shares of the Wing Company for $ 720,000 in cash. On that date, subsequent to the completion of the business combination, the Statement of Financial Positions of the Leaf and Wing Companies and the fair values of Wing's identifiable assets and liabilities were as set out below:

December 31,2015

LeafWingWing Fair Values

Cash and accounts receivable$350,000$200,000$200,000

Inventories950,000500,000450,000

Investment in Wing720,000--

Capital assets (net)2,400,000700,000800,000

$ 4,420,000 $1,400,000

Current liabilities$400,000$100,000$100,000

Bonds payable1,000,000400,000360,000

Common shares1,000,000800,000

Retained earnings2,020,000100,000

$4,420,000$1,400,000

Additional information with respect to the acquisition follows:

1.Wing inventory that was acquired in the acquisition was sold in 2016.

2.Capital assets of Wing on December 31, 2015 have an estimated useful life of 10 years. Both companies use the straight-line method of depreciation

3.Bonds payable in Wing mature on December 31, 2018.The parent company uses the straight-line method of amortizing debt premium and discount.

Information related to 2017:

1.During 2017 the Leaf Company declared and paid $100,000 in dividends while the Wing Company declared and paid $ 40,000 in dividends.

2.On December 31, 2017, Wing still owes Leaf for management fees earned by Leaf during 2017 of

$ 25,000.

3.Sales by Wing Company to Leaf in 2017 were $ 200,000. All this inventory was sold to third parties in 2017. Sales by Leaf Company to Wing in 2017 were $ 300,000. All this inventory was sold to third parties in 2017.

5.Goodwill was tested for impairment in 2016 and 2017. As a result, an impairment of $ 16,000 occurred in 2016 and was recognized as a Goodwill Impairment Loss in that year. A further impairment of

$ 20,000 was found in 2017.

Required:

A partial financial statement appears below for Leaf and Wing Companies for the year ended December 31, 2017 which contains selected accounts only.

Calculate the balances for the items indicated with a" ? " under the "consolidated balances" column and insert your answers onto the final exam for submission.

Leaf Wing Adjustments Consolidated Selected Accounts Income Statments Debits Credits Balances Year End 12/31/2017 Sales 2,500,000 1,300,000 Other revenue 100,000 30,000 2,600,0000 1,330,000 Cost of sales 1,200,000 750,000 Depreciation 400,000 250,000 Expenses (misc) 800,000 180,000 Goodwill impairment 0_ 2,400,000 1,180,000 Net income (NI) 200,000 150,000 NCI Share Of NI CI Share Of NI Leaf Wing R/E Statements Year End Selected Accounts Year ended 12/31/2017 Dividends ( 100.000) (40,000) Leaf Wing Selected Accounts Balance Sheets, 12/31/2017 Cash and A/R 530,000 250,000 Capital assets (net) 2,150,000 850,000 Goodwill Current liabilities 300,000 40,000 Bonds payable 1,000,000 400,000 Common shares 1,000,000 800,000 NCI 0 0