On January $2$ of year $1,$ Pacific sold shares for $$125,000$ to purchase $80\%$ of the outstanding

shares of South. At the time of purchase, inventory was underestimated by $$8,000$ and PPE by

$$12,000.$ Assume that the Non$-$Controlling Interest $(NCl)$ is $$30,000.$ Prepare the consolidated

financial statements of Pacific and South: Balance Sheet, Net Income, and Changes in Equity. If

you're working in a group, make sure to practice and understand the process because a similar

exercise plus the usual matching and definitions will be on the final exam. Also, remember that

this is for submission and is worth a grade. Assume no depreciation or dividends. Pacific had

$$15,000$ in common stock, $$70,000$ in Additional Paid$-$In Capital $($APIC$),$ and $$30,000$ in Retained

Earnings before the purchase.