On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $699.000. On January 1, Year 6, Pic Company acquired an additional 2,000 ordinary shares of Sic Company for $211,000. On January 1, Year 5, the shareholders' equity of Sic was as follows: Ordinary shares (10,000 no par value shares issued) Retained earnings $200,000 336,000 $536,000 The following are the statements of retained earnings for the two companies for Years 5 and 6: Retained earnings, beginning of year Profit Dividends Retained earnings, end of year Pic Year 5 Year 6 $ 572,000 $ 646,500 174,500 145,500 (100,000) (120,000) $ 646,500 $ 672,000 Sic Year 5 Year 6 $ 336,000 $ 374,500 128,500 145,000 (90,000) (90,000) $ 374,500 $ 429,500 Additional Information Pic uses the cost method to account for its investment in Sic. Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 31, Year 7. Neither company has any customer contracts recorded their separate-entity records. There were no unrealized profits from intercompany transactions since the date of acquisition. Required: (a) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit $ sign in your response.) Consolidated profit attributable to Pic's shareholders $ The following are the statements of retained earnings for the two companies for Years 5 and 6: Retained earnings, beginning of year Profit Dividends Retained earnings, end of year Pic Year 5 Year 6 $ 572,000 $ 646,500 174,500 145,500 (100,000) (120,000) $ 646,500 $ 672,000 Sic Year 5 Year 6 $ 336,000 $ 374,500 128,500 145,000 (90,000) (90,000) $ 374,500 $ 429,500 Additional Information Pic uses the cost method to account for its investment in Sic. . Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 31, Year 7. Neither company has any customer contracts recorded on their separate-entity records. There were no unrealized profits from intercompany transactions since the date of acquisition. Required: (a) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit $ sign in your response.) Consolidated profit attributable to Pic's shareholders (b) Calculate the following account balances for the consolidated statement of financial position at December 31, Year 6: (Omit $ sign in your response.) $ (i) Customer contracts (ii) Non-controlling interest (iii) Retained earnings $ $ On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $699.000. On January 1, Year 6, Pic Company acquired an additional 2,000 ordinary shares of Sic Company for $211,000. On January 1, Year 5, the shareholders' equity of Sic was as follows: Ordinary shares (10,000 no par value shares issued) Retained earnings $200,000 336,000 $536,000 The following are the statements of retained earnings for the two companies for Years 5 and 6: Retained earnings, beginning of year Profit Dividends Retained earnings, end of year Pic Year 5 Year 6 $ 572,000 $ 646,500 174,500 145,500 (100,000) (120,000) $ 646,500 $ 672,000 Sic Year 5 Year 6 $ 336,000 $ 374,500 128,500 145,000 (90,000) (90,000) $ 374,500 $ 429,500 Additional Information Pic uses the cost method to account for its investment in Sic. Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 31, Year 7. Neither company has any customer contracts recorded their separate-entity records. There were no unrealized profits from intercompany transactions since the date of acquisition. Required: (a) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit $ sign in your response.) Consolidated profit attributable to Pic's shareholders $ The following are the statements of retained earnings for the two companies for Years 5 and 6: Retained earnings, beginning of year Profit Dividends Retained earnings, end of year Pic Year 5 Year 6 $ 572,000 $ 646,500 174,500 145,500 (100,000) (120,000) $ 646,500 $ 672,000 Sic Year 5 Year 6 $ 336,000 $ 374,500 128,500 145,000 (90,000) (90,000) $ 374,500 $ 429,500 Additional Information Pic uses the cost method to account for its investment in Sic. . Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 31, Year 7. Neither company has any customer contracts recorded on their separate-entity records. There were no unrealized profits from intercompany transactions since the date of acquisition. Required: (a) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit $ sign in your response.) Consolidated profit attributable to Pic's shareholders (b) Calculate the following account balances for the consolidated statement of financial position at December 31, Year 6: (Omit $ sign in your response.) $ (i) Customer contracts (ii) Non-controlling interest (iii) Retained earnings $ $
