On January 1, Year 4 , Grant Corporation bought 12,000(80%) of the outstanding common shares of Devy Company for $105,000 cash. Devy's shares were trading for $7 per share on the date of acquisition. On that date, Devy had $37,500 of common shares outstanding and $45,000 retained earnings. Also on that date, the carrying amount of each of Devy's identifiable assets and liabilities was equal to its fair value except for the following: The patent had an estimated useful life of five years at January 1, Year 4 , and the entire inventory was sold during Year 4 . Grant uses the cost method to account for its investment. The following are the separate-entity financial statements of Grant and Devy as at December 31 , Year 7 : Addltional Informetion - The recoverable amount for goodwill was determined to be $15,000 on December 31 , Year 7 . The goodwill impairment loss occurred in Year 7. - Grant's accounts receivable contains $45,000 owing from Devy. - Amortization expense is grouped with distribution expenses and impairment losses are grouped with other expenses. Required: (a) Calculate consolidated retained earnings at December 31 , Year 7 . (Input all values as positlve numbers. Omlt $ and \% slgn In your response.) (b) Prepse consalidoted fingncisl statements for Yeser 7 . (linput all volues as posttive numbers.)