O'Sullivan 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: Inventory Equipment Software Carrying Amount $30,000 Fair value 45,000 $ 19,000 69,000 15,000 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. O'Sullivan uses the cost method to account for its Investment. The testing for impairment at December 31, Year 6, yielded the following fair values: Software Goodwill $ 8,000 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 parent's share of the goodwill noted above is $16,364. The following are the financial statements of O'Sullivan Corp. and its subsidiary Rabb Ltd. for Year 6: Cash BALANCE SHEETS At December 31, Year 6 Accounts receivable Note receivable Inventory Equipment, net Land Investment in Rabb O'Sullivan Rabb Ltd. Corp. $ $ 10,000 40,000 30,000 40,000 66,000 44,000 220,000 76,000 150,000 30,000 117,000 $593,000 $ 230,000 Bank indebtedness Accounts payable $ 90,000 $ 70,000 60,000 Notes payable 40,000 Common shares 150,000 Retained earnings 243,000 50,000 120,000 $593,000 $ 230,000 STATEMENTS OF RETAINED EARNINGS Year ended December 31, Year 6 Retained earnings, January 1, Year 6 Net income Dividends Retained earnings, December 31, Year 6 O'Sullivan Corp. $ 153,000 120,000 (38,000) $ 243,000 Rabb Ltd. $ 92,000 48,000 (20,000) $ 120,000 Sales Investment incone Cost of sales Administrative expenses Miscellaneous expenses Income taxes INCOME STATEMENTS For the year ended December 31, Year 6 O'Sullivan Corp. $821,000 15,000 Rabb Ltd. $ 320,000 3,600 323,600 200,000 12,000 31,600 32,000 836,000 480,000 40,000 116,000 80,000 716,000 275,600 Net income $120,000 $ 48,000 Additional Information The 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.) O'Sullivan Corp. Consolidated Income Statement For the year ended December 31, Year 6 Attributable to: O'Sullivan's shareholders Non-controlling interest 0 0 O'Sullivan Corp. Statement of Consolidated Retained Earnings Year ended December 31, Year 6 (Click to select) (Click to select) (Click to select) (Click to select) Assets O'Sullivan Corp. Consolidated Balance Sheet At December 31, Year 6 $ S Liabilities and Equity (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 method