Papa Inc purchased 70 of the voting shares of Son Inc for $560,000 on January 1, Year 3 On that date, Son's commons stock and retained earnings were valued at $200,000 and $150,000 respectively Papa uses the cost method to account for its investment in Son Inc At the time of acquisition, Son's fair values, carrying values and tax bases are approximately the same except for equipment Fair ValueCarrying AmountTax Base Equipment$300,000$200,000$100,000 The equipment had a remaining useful life of five years Both companies use straight line amortization exclusively The Financial Statements of both companies for Year 5 are shown below Income Statements Papa Inc Son Inc Sales$900,000$800,000 Other income120,000110,000 Less Expenses Cost of Goods Sold550,000580,000 Depreciation Expense30,000$20,000 Other Expenses100,000120,000 Income Tax Expense80,00060,000 Net Income$260,000$130,000 Retained Earnings Statements Balance, January 1, Year 5$200,000$220,000 Net Income260,000130,000 Less Dividends(60,000)(50,000) Retained Earnings, Dec 31, Year 5$400,000$300,000 Balance Sheet Papa Inc Son Inc Cash$100,000$230,000 Accounts Receivable60,00030,000 Inventory105,000110,000 Investment in Son Inc 560,000 Equipment (net)240,000180,000 Land175,00050,000 Total Assets$1,240,000$600,000 Current Liabilities$240,000$70,000 Deferred Tax Liabilities 30,000 Common Shares$600,000$200,000 Retained Earnings$400,000$300,000 Total Liabilities and Equity$1,240,000$600,000 Other Information During Year 5, Son sold inventory to Papa for $50,000 The cost of these goods to Son was $30,000 20 of this inventory was resold by Papa to outside parties, the rest remained in the inventory at year end On January 1, Year 5, Son purchased equipment for $40,000 and sold to Papa immediately for $70,000 The equipment had a useful life of 4 years The effective tax rate for both companies is 40 What is Goodwill at the time of acquisition What is NCI at the time of acquisition What are the amounts for the following accounts in the Consolidated Statement of Earnings for Year 5 Sales Other Income Cost of Goods Sold Depreciation What are the amounts for the following accounts in the Consolidated Statement of Financial Positions as at Dec 31, Year 5 Accounts Receivable Inventory Equipment Common Shares

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Papa Inc. purchased 70% of the voting shares of Son Inc. for $560,000 on January 1, Year 3. On that date, Son's commons stock and

Papa Inc. purchased 70% of the voting shares of Son Inc. for $560,000 on January 1, Year 3. On that date, Son's commons stock and retained earnings were valued at $200,000 and $150,000 respectively. Papa uses the cost methodto account for its investment in Son Inc.

At the time of acquisition, Son's fair values, carrying values and tax bases are approximately the same except for equipment:

Fair ValueCarrying AmountTax Base

Equipment$300,000$200,000$100,000

The equipment had a remaining useful life of five years.
Both companies use straight-line amortization exclusively.
The Financial Statements of both companies for Year 5 are shown below:
Income Statements
Papa Inc.Son Inc.
Sales$900,000$800,000
Other income120,000110,000
Less: Expenses:
Cost of Goods Sold550,000580,000
Depreciation Expense30,000$20,000
Other Expenses100,000120,000
Income Tax Expense80,00060,000
Net Income$260,000$130,000
Retained Earnings Statements
Balance, January 1, Year 5$200,000$220,000
Net Income260,000130,000
Less: Dividends(60,000)(50,000)
Retained Earnings, Dec 31, Year 5$400,000$300,000
Balance Sheet
PapaInc.Son Inc.
Cash$100,000$230,000
Accounts Receivable60,00030,000
Inventory105,000110,000
Investment in Son Inc.560,000-
Equipment (net)240,000180,000
Land175,00050,000
Total Assets$1,240,000$600,000
Current Liabilities$240,000$70,000
Deferred Tax Liabilities-30,000
Common Shares$600,000$200,000
Retained Earnings$400,000$300,000
Total Liabilities and Equity$1,240,000$600,000

Other Information:

During Year 5, Son sold inventory to Papa for $50,000. The cost of these goods to Son was $30,000. 20% of this inventory was resold by Papa to outside parties, the rest remained in the inventory at year-end.
On January 1, Year 5, Son purchased equipment for $40,000 and sold to Papa immediately for $70,000. The equipment had a useful life of 4 years.
The effective tax rate for both companies is 40%.

What is Goodwill at the time of acquisition

What is NCI at the time of acquisition

What are the amounts for the following accounts in the Consolidated Statement of Earnings for Year 5

Sales

Other Income

Cost of Goods Sold

Depreciation

What are the amounts for the following accounts in the Consolidated Statement of Financial Positions as at Dec 31, Year 5

Accounts Receivable

Inventory

Equipment

Common Shares