On December 31st.2015, X Inc. purchased 75% of the shares of Y Co. for $3,570,000. On that date, the carrying amount of Ys identifiable net assets was $4,080,000 (Common Stock was $2,780,000 and retained earnings $1,300,000) . The carrying amount of Ys identifiable net assets were equal to their fair values except that the carrying amount of Ys inventory was $2,000,000 while its fair value was $2,119,000, and Y had unrecognized trademarks that were worth $138,000. On the acquisition date, Ys retained earnings were $1,080,000. The trademarks are being amortized over 6 years. During 2019, an impairment loss of $170,000 occurred for the goodwill. Prior to 2019, there had not been any goodwill impairment. X INC. & Y LTD. Statements of Income and Retained Earnings Year ended December 31st.2019 X..Y Sales.$.12,280,000 $7,370,000 Investment Income. .... 240,000. 12,000 TOTAL REVENUE.....$12,520,000$7,382,000 EXPENSES:- Cost of goods sold.......... 7,859,0005,159,000 Depreciation and amortization expenses. ...................... 531,000. 350,000 Interest expense............ 212,000 152,000 Other expenses ............ 793,000.. 356,000 TOTAL EXPENSES:........10,645,000.6,563,000 NET INCOME....... 1,875,000 819,000 Retained earnings at the beginning of the Year.....................1,722,000 1,300,000 Dividends...... 625,000 320,000 Retained Earnings, end of Year.................... $2,972,000.$1,799,000 X INC. & Y LTD. Balance Sheets December 31st.2019 XY Assets:- Cash and receivables$1,516,000$ 896,000 Inventory4,124,000 2,850,000 Investment in Y.3,570,000 Loan to X 300,000 Property, plant and equipment, net..........5,906,000 5,756,000 TOTAL ASSETS.....$15,116,000$9,802,000 Liabilities& Shareholders Equity: Current liabilities....$ 2,844,000...$1,203,000 Long-term liabilities..5,300,000. 3,800,000 Common shares.4,000,000.3,000,000 Retained Earnings.... 2,972,000.1,799,000 TOTAL LIABILITIES& OWNERS EQUITY ............$15,116,000$9,802,000

Additional Information:-a) On January 1st.2019, Y loaned X $300,000, none of which has been paid back. Y earned $12,000 in interest on the loan, which has been reported as investment income. The interest has not yet been received.

b)Y regularly sells inventory to X at a price that earns a gross profit of 30% for Y/ During 2019, X purchased $1,000,000 of inventory from Y and $400,000 of it remained unsold at December 31st.2019. At December 31st.2018, X did not have any inventory from Y on hand.

c)On December 31st.2017, Y had sold some equipment to X for $700,000 (equipment is still being used by X). Ys carrying amount for this equipment just prior to its sale was $400,000. The remaining useful life of the equipment was 15 years on the date of the sale.

d)Land that originally cost $390,000 had been sold by X to Y in 2017 for $490,000. This land is still held by Y at December 31st.2019.

e)The tax rate is 40%.

f)X uses the cost method to account for the investment in Y in its separate entity financial statements.

g)X uses the acquisition method to value NCI.

Required: -(1)Prepare the following for X's consolidated balance sheet:-

i. Goodwill

. ii. Amortization schedule

iii. Inventory

iv. Property, Plant and Equipment

v. Deferred Tax Assets

vi. Consolidated Net Income

vii. NCI for the Balance Sheet.

(b) Prepare the elimination working paper entry at acquisition