Poper Corp. purchssed 70% of the outstanding shares of Sand Ltd. on January 1, Yecr 2, at a cost of $87,220. Paper has alwsys used the equity method to account for its investments. On Jonuary 1, Year 2 , Send hed common shares of $50,000 and retained esrnings of $29,000, and fair velues were equal to carrying amounts for all its net ossets, except inventory (fair volue wos $5,000 less than corrying amount) and equipment (fair value wos $16,500 greater then carrying smount). The equipment, which is used for research, had on estimated remaining life of six years on Jonuary 1 , Year 2 The following are the financial statements of Paper Corp. and its subsidiary Sand Ltd. as at December 31, Year 5: Additional Information - During Yeor 5, Ssnd made o cosh poyment of $2000 per month to Poper for monagement fees, which is included in Sond's Miscellaneous expenses. - During Year 5, Paper made intercompany sales of $105,000 to Sond. The December 31, Year 5, inventory of Send contained goods purchased from Paper amounting to $31,500. These sales had a gross profit of 35%. - On April 1, Year 5, Paper acquired land from Sand for $32,400. This land had been recorded on Sand's books at a carrying amount of $20,000. Psper poid for the land by signing a $32,400 note poyable to Sand, bearing yearly interest at 10%. Interest for Year 5 wos psid by Paper in cash on December 31 , Year 5 . This land wos still being held by Poper 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 , o voluation was performed, indicating that the recoverable smount of consolidated goodwill was $4,600. - During the year ended December 31, Year 5, Peper poid 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. (Negatlve amounts should be indicated by a minus sign. Leave no cells blank - be certaln to enter "0" wherever required. Omit $ sign in your response.) (b) Prepore Psper's consolidated income statement for the yesr ended December 31, Yesr 5 , with expenses classified by function. (Round your answer to nearest whole dollar.) (b) Prepore Psper's consolidated income statement for the yesr ended December 31 , Yesr 5 , with expenses classified by function. (Round your answer to nearest whole dollar.) (c) Calculate the following balances that would appear on Paper's consolidated bslance sheet as at December 31, Year 5: (Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.) (1) Inventory $ (II) Land $ (III) Notes payable 5 (Iv) Non-controlling interest $ (v) Common shares $ (d) Assume that an independent business voluator volued the non-controlling interest at $35,425 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.) Poper Corp. purchssed 70% of the outstanding shares of Sand Ltd. on January 1, Yecr 2, at a cost of $87,220. Paper has alwsys used the equity method to account for its investments. On Jonuary 1, Year 2 , Send hed common shares of $50,000 and retained esrnings of $29,000, and fair velues were equal to carrying amounts for all its net ossets, except inventory (fair volue wos $5,000 less than corrying amount) and equipment (fair value wos $16,500 greater then carrying smount). The equipment, which is used for research, had on estimated remaining life of six years on Jonuary 1 , Year 2 The following are the financial statements of Paper Corp. and its subsidiary Sand Ltd. as at December 31, Year 5: Additional Information - During Yeor 5, Ssnd made o cosh poyment of $2000 per month to Poper for monagement fees, which is included in Sond's Miscellaneous expenses. - During Year 5, Paper made intercompany sales of $105,000 to Sond. The December 31, Year 5, inventory of Send contained goods purchased from Paper amounting to $31,500. These sales had a gross profit of 35%. - On April 1, Year 5, Paper acquired land from Sand for $32,400. This land had been recorded on Sand's books at a carrying amount of $20,000. Psper poid for the land by signing a $32,400 note poyable to Sand, bearing yearly interest at 10%. Interest for Year 5 wos psid by Paper in cash on December 31 , Year 5 . This land wos still being held by Poper 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 , o voluation was performed, indicating that the recoverable smount of consolidated goodwill was $4,600. - During the year ended December 31, Year 5, Peper poid 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. (Negatlve amounts should be indicated by a minus sign. Leave no cells blank - be certaln to enter "0" wherever required. Omit $ sign in your response.) (b) Prepore Psper's consolidated income statement for the yesr ended December 31, Yesr 5 , with expenses classified by function. (Round your answer to nearest whole dollar.) (b) Prepore Psper's consolidated income statement for the yesr ended December 31 , Yesr 5 , with expenses classified by function. (Round your answer to nearest whole dollar.) (c) Calculate the following balances that would appear on Paper's consolidated bslance sheet as at December 31, Year 5: (Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.) (1) Inventory $ (II) Land $ (III) Notes payable 5 (Iv) Non-controlling interest $ (v) Common shares $ (d) Assume that an independent business voluator volued the non-controlling interest at $35,425 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.)