On December 31, Year 4, RAV Company purchased 60% of the outstanding common shares of ENS Company for $930,000. On that date, ENS had common shares of $500,000 and retained earnings of $125,000. In negotiating the purchase price, it was agreed that recorded assets and liabilities were fairly valued except for equipment, which had a $24,000 excess of carrying amount over fair value, and land, which had a $149,000 excess of fair value over carrying amount. The equipment had a remaining useful life of six years at the acquisition date and no salvage value. ENS did not record the fair value deficiency on the equipment because ENS felt that it would recover the carrying amount of this equipment through future cash flows. In addition, ENS registered and owns a number of Internet domain names, which are estimated to be worth $99,000. The right to the names expires in 12 years but the registration can be renewed for 20 years every 20 years, for a nominal fee. The adjusted trial balances for RAV and ENS for the year ended December 31, Year 8, were as follows: Cash Accounts receivable Inventory Land Building (net) Equipment (net) Investment in ENS Cost of goods purchased Change in inventory Amortization expense Income taxes and other expenses Dividends paid Total debits Accounts payable Long-term debt Common shares Retained earnings, beginning Sales Other revenues Equity method incone from ENS Total credits RAV ENS $ 120,000 $ 80,000 237,000 231,000 604,000 272,000 480,000 220,000 760,000 610,000 700,000 364,000 615,600 2,355,000 2,212,000 70,000 (35,000) 230,000 115,000 945,000 437,000 474,000 $7,590,600 $ 470,000 484,000 1,200,000 645,600 4,470,000 93,000 228,000 $7,590,600 289,000 $4,795,000 $ 306,000 600,000 500,000 279,000 3,110,000 $4,795,000 Additional Information: Every year, goodwill is evaluated to determine if there has been a loss. The recoverable amount for ENS's goodwill was valued at $99,000 at the end of Year 7 and $75,000 at the end of Year 8. RAV's inventories contained $250,000 of merchandise purchased from ENS at December 31, Year 8, and $300,000 at December 31, Year 7. During Year 8, sales from ENS to RAV were $540,000. Merchandise was priced at the same profit margin as applicable to other customers. RAV owed $160,000 to ENS at December 31, Year 8, and $168,000 at December 31, Year 7. . On July 1, Year 5, ENS purchased a building from RAV for $760,000. The building had an original cost of $810,000 and a carrying amount of $610,000 on RAV's books on July 1, Year 5. ENS estimated the remaining life of the building was 15 years at the time of the purchase from RAV. ENS rented another building from RAV throughout the year for $7,000 per month. RAV uses the equity method of accounting for its long-term investments. Both companies pay tax at the rate of 40%. Ignore deferred income taxes when allocating and recording changes to the acquisition differential. Required: (a) Prepare a consolidated income statement for the year ended December 31, Year 8. (Enter your answers in thousands of dollars. Round your "Shareholders of RAV" and "Non-controlling interest" answers to 1 decimal place. Input all values as positive numbers.) Sales Consolidated Income Statement December 31, Year 8. Other revenues Total revenues Cost of goods purchased Change in inventory Amortization expense Goodwill impairment Income tax and other expenses Total expenses Attributable to: Shareholders of RAV Non-controlling interest 7,040 $ 7,040 (b) Prepare the current assets; property, plant, and equipment; and intangible assets sections of the consolidated balance sheet at December 31, Year 8. (Enter your answers in thousands of dollars.) Current assets Consolidated Balance Sheet December 31, Year 8. Property, plant & equipment Intangible assets