Physics Co. acquired a controlling interest in Steven Co. The relevant details on the acquisition date are as follows. Date of acquisition 1 January 2012 Percentage acquired by Physics Co. in Steven Co. Consideration transferred 90% $900,000 Shareholders' equity of Steven Co. on 1 January 2012 Share Capital Retained Earnings $650,000 60,000 The fair value of identifiable net assets of Steven Co. was close to its book value The fair value of non-controlling interests in Steven Co. Steven Co. has the following changes in equity for 2021. $145,000 Net income Less dividends declared Profit retained for the year Retained Earnings, 1 January Retained Earnings, 31 December $630,000 0 630,000 230,000 $860,000 The statement of financial position as of 31 December 2021 is shown below. Physics Co. Steven Co. Assets Fixed Assets $5,000,000 $ 2,000,000 Less: Accumulated Depreciation - Fixed Assets (350,000) Investment in Steven Co., at cost 900,000 (400,000) 0 Inventory Cash 430,000 270,000 350,000 255,000 $ 6,250,000 $ 2,205,000 Liabilities Accounts Payable Shareholders' Equity Share Capital Retained Earnings $960,000 $ 695,000 1,200,000 4,090,000 650,000 860,000 $ 6,250,000 $ 2,205,000 Additional information: 1. Steven Co. sold inventory to Physics Co. on 15 March 2021 at a transfer price of $105,000. The original cost as recorded in Steven Co.'s books prior to the transfer was $103,000. Forty percent of the inventory was sold to a third party by 31 December 2021. Sixty percent of the inventory remained unsold at Physics Co. as of 31 December 2021. 2. On 31 December 2021, Steven Co. transferred excess fixed assets to Physics Co. at a transfer price of $400,000. According to Steven Co., the original cost of the fixed assets was $320,000, and the accumulated depreciation was $153,600 at the date of transfer. Required: (Support with detailed calculations.) a. What is the amount of goodwill arising from Physics Co.'s acquisition of Steven Co.? (3 marks) b. Prepare all consolidation journal entries (with explanations) for the year ended 31 December 2021. (24 marks) C. Prepare the "Asset" section of the consolidated statement of financial position as of 31 December 2021. (8 marks)