OSullivan Corp. purchased $75\%$ of the outstanding shares of Rabb Ltd$.$ on January $1,$ Year $3,$ at a cost of $$117,000.$ Non$-$controlling interest was valued at $$35,000$ by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $$50,000$ and retained earnings of $$30,000.$ Fair values were equal to carrying amounts for all the net assets except the following:$$Carrying AmountFair ValueInventory$$30,000$$$19,000$Equipment$45,00069,000$Software$15,000$Tap the table to full screen$$The equipment had an estimated remaining useful life of six years on January $1,$ Year $3,$ and the software was to be amortized over ten years. OSullivan uses the cost method to account for its investment. The testing for impairment at December $31,$ Year $6,$ yielded the following fair values:$$Software$$8,000$Goodwill$20,000$The impairment loss on these assets occurred entirely in Year $6.$ Amortization expense is grouped with administrative expenses, and impairment losses are grouped with miscellaneous expenses. The parents share of the goodwill noted above is $$16,364.$The following are the financial statements of OSullivan Corp. and its subsidiary Rabb Ltd$.$ for Year $6$:$$BALANCE SHEETSAt December $31,$ Year $6$OSullivan Corp.Rabb Ltd$.$Cash$$$10,000$Accounts receivable$40,00030,000$Note receivable$40,000$Inventory$66,00044,000$Equipment, net$220,00076,000$Land$150,00030,000$Investment in Rabb$117,000$$$593,000$$$230,000$Bank indebtedness$$90,000$$Accounts payable$70,00060,000$Notes payable$40,000$Common shares$150,00050,000$Retained earnings$243,000120,000$$$593,000$$$230,000$Tap the table to full screen$$STATEMENTS OF RETAINED EARNINGSYear ended December $31,$ Year $6$OSullivan Corp.Rabb Ltd$.$Retained earnings, January $1,$ Year $6$$$153,000$$$92,000$Net income$120,00048,000$Dividends$(30,000)(20,000)$Retained earnings, December $31,$ Year $6$$$243,000$$$120,000$Tap the table to full screen$$INCOME STATEMENTSFor the year ended December $31,$ Year $6$OSullivan Corp.Rabb Ltd$.$Sales$$821,000$$$320,000$Investment income$15,0003,600836,000323,600$Cost of sales$480,000200,000$Administrative expenses$40,00012,000$Miscellaneous expenses$116,00031,600$Income taxes$80,00032,000716,000275,600$Net income$$120,000$$$48,000$Tap the table to full screen$$Additional InformationThe notes payable are intercompany.$$Required:$($a$)$Prepare the Year $6$ consolidated financial statements.$($Input all values as positive numbers. Leave no cells blank $-$ be certain to enter $"0"$ wherever required. Round your intermediate computations to nearest whole dollar value.$$Omit $ sign in your response.$)$OSullivan Corp.Statement of Consolidated Retained EarningsYear ended December $31,$ Year $6($Click to select$)$Balance December $31$Balance January $1$$$($Click to select$)$Net income$$Net loss$($Click to select$)$Add: Dividends$$Less: Dividends$($Click to select$)$Balance January $1$Balance December $31$$Tap the table to full screen$($b$)$Calculate goodwill impairment loss and non$-$controlling interest on the consolidated income statement for the year ended December $31,$ Year $6,$ under the identifiable net assets method.$($Omit $ sign in your response.$)$Goodwill impairment loss$NCI identifiable net assets methodTap the table to full screen$($c$)$This part of the question is not part of your Connect assignment