OSullivan Corp. purchased 75% of the outstanding shares of Rabb Ltd. on January 1, Year 3, at a cost of $191,520. Non-controlling interest was valued at $69,000 by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $67,000 and retained earnings of $47,000. Fair values were equal to carrying amounts for all the net assets except the following:

	Carrying Amount		Fair Value
Inventory	$	47,000		$	27,500
Equipment		48,400			77,500
Software					23,500

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. Foxx uses the cost method to account for its investment. The testing for impairment at December 31, Year 6, yielded the following fair values:

Software	$	11,400
Goodwill		109,858

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 $78,645.

The following are the financial statements of OSullivan Corp. and its subsidiary Rabb Ltd. for Year 6:

BALANCE SHEETS
At December 31, Year 6
	OSullivan Corp.		Rabb Ltd.
Cash	$			$	11,700
Accounts receivable		57,000			47,000
Note receivable					57,000
Inventory		83,000			61,000
Equipment, net		305,000			93,000
Land		235,000			47,000
Investment in Rabb		191,520
	$	871,520		$	316,700
Bank indebtedness	$	175,000		$
Accounts payable		87,000			77,000
Notes payable		57,000
Common shares		167,000			67,000
Retained earnings		385,520			172,700
	$	871,520		$	316,700

STATEMENTS OF RETAINED EARNINGS
Year ended December 31, Year 6
	OSullivan Corp.			Rabb Ltd.
Retained earnings, January 1, Year 6	$	238,000			$	177,000
Net income		207,475				57,000
Dividends		(59,955	)			(61,300	)
Retained earnings, December 31, Year 6	$	385,520			$	172,700

INCOME STATEMENTS
For the year ended December 31, Year 6
	OSullivan Corp.		Rabb Ltd.
Sales	$	838,000		$	371,000
Investment income		45,975			21,100
		883,975			392,100
Cost of sales		497,000			217,000
Administrative expenses		48,500			20,500
Miscellaneous expenses		85,000			48,600
Income taxes		46,000			49,000
		676,500			335,100
Net income	$	207,475		$	57,000

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.The balance sheet total may vary due to rounding.)

OSullivan Corp. Statement of Consolidated Retained Earnings Year ended December 31, Year 6
(Click to select) Balance December 31 Balance January 1	$
(Click to select) Net income Net loss
(Click to select) Less: Dividends Add: Dividends
(Click to select) Balance January 1 Balance December 31	$

(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. (Round intermediate calculations and final answers to whole number. Omit $ sign in your response.)

Goodwill impairment loss		$
NCI identifiable net assets method