Paper Corp. purchased $70\%$ of the outstanding shares of Sand Ltd$.$ on January $1,$ Year $2,$ at a cost of $$80,220.$ Paper has always used the equity method to account for its investments. On January $1,$ Year $2,$ Sand had common shares of $$50,000$ and retained earnings of $$24,000,$ and fair values were equal to carrying amounts for all its net assets, except inventory $($fair value was $$3,800$ less than carrying amount$)$ and equipment $($fair value was $$11,400$ greater than carrying amount$).$ The equipment, which is used for research, had an estimated remaining life of six years on January $1,$ Year $2.$ The following are the financial statements of Paper Corp. and its subsidiary Sand Ltd$.$ as at December $31,$ Year $5$: BALANCE SHEETSAt December $31,$ Year $5$ Paper SandCash$ $$15,000$Accounts receivable $38,50027,800$Note receivable $35,800$Inventory $73,50046,500$Equipment $($net$)245,00078,500$Land $170,00035,000$Investment in Sand $119,644$ $$646,644$ $$238,600$Bank indebtedness$$124,105$ $Accounts payable $60,00056,100$Notes payable $35,800$ Common shares $150,00050,000$Retained earnings $276,739132,500$ $$646,644$ $$238,600$ INCOME STATEMENTSFor the year ended December $31,$ Year $5$ Paper SandSales$$818,000$ $$313,500$Management fee revenue $16,800$ Equity method income from Sand $3,226$ Interest income $3,580$Gain on sale of land $21,800838,026338,880$Cost of sales $490,800209,000$Research and development expenses $42,50014,000$Interest expense $14,000$ Miscellaneous expenses $111,00024,400$Income taxes $71,12036,592729,420283,992$Net income$$108,606$ $$54,888$ Additional InformationDuring Year $5,$ Sand made a cash payment of $$1,400$ per month to Paper for management fees, which is included in Sands Miscellaneous expenses.During Year $5,$ Paper made intercompany sales of $$70,000$ to Sand. The December $31,$ Year $5,$ inventory of Sand contained goods purchased from Paper amounting to $$21,000.$ These sales had a gross profit of $35\%.$On April $1,$ Year $5,$ Paper acquired land from Sand for $$35,800.$ This land had been recorded on Sands books at a carrying amount of $$14,000.$ Paper paid for the land by signing a $$35,800$ note payable to Sand, bearing yearly interest at $10\%.$ Interest for Year $5$ was paid by Paper in cash on December $31,$ Year $5.$ This land was still being held by Paper on December $31,$ Year $5.$The value of consolidated goodwill remained unchanged from January $1,$ Year $2,$ to July Year $5.$ On July $1,$ Year $5,$ a valuation was performed, indicating that the recoverable amount of consolidated goodwill was $$4,000.$During the year ended December $31,$ Year $5,$ Paper paid dividends of $$80,000$ and Sand paid dividends of $$20,000.$Sand and Paper pay taxes at a $40\%$ rate. Assume that none of the gains or losses were capital gains or losses. Required:$($a$)$ Prepare, in good form, a calculation of goodwill and any undepleted acquisition differential as of December $31,$ Year $5.($Negative amounts should be indicated by a minus sign. Leave no cells blank $-$ be certain to enter $"0"$ wherever required. Omit $ sign in your response.$)$ Balance Changes to Balance January $1,$ Year $2$ Year $2-4$ Year $5$ Dec. $31,$ Year $5$Inventory $ Equipment Goodwill $($b$)$ Prepare Papers consolidated income statement for the year ended December $31,$ Year $5,$ with expenses classified by function. $($Round your answer to nearest whole dollar.$)($c$)$ Calculate the following balances that would appear on Papers consolidated balance sheet as at December $31,$ Year $5$: $($Leave no cells blank $-$ be certain to enter $"0"$ wherever required. Omit $ sign in your response.$)($i$)$ Inventory $ $($ii$)$ Land $ $($iii$)$ Notes payable $ $($iv$)$ Non$-$controlling interest $ $($v$)$ Common shares $ $($d$)$ Assume that an independent business valuator valued the non$-$controlling interest at $$32,250$ at the date of acquisition. Calculate goodwill impairment loss and profit attributable to non$-$controlling interest for the year ended December $31,$ Year $5.($Omit $ sign in your response.$)$ Goodwill impairment loss $ Profit attributable to non$-$controlling interest $