Power Corporation acquired 75 percent of Best Company's ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Best's net assets at acquisition was $100,000. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. The book values and fair values of Best's assets and liabilities were equal, except for Best's buildings and equipment, which were worth $20,000 more than book value. Buildings and equipment are depreciated on a 10-year basis Although goodwill is not amortized, the management of Power concluded at December 31, 20x8, that goodwill from its purchase of Best shares had been impaired and the correct carrying amount was $2.500. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. No additional impairment occurred in 20X9. Trial balance data for Power and Best on December 31, 20X9, are as follaws: Power Corporation Best Company Credit $ 32,000 S 68,500 85,000 97,000 50,000 350,000 106,875 145,000 Accounts Receivable Land Buildings & Equipment Investment in Best Co. Stock Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Dividends Declared 114,000 20,000 25,000 12,000 170,000 51,000 14,000 150,000 200,000 126,875 290,000 S 50,000 15,000 Accounts Payable Wages Payable Notes Payable Common Stock Retained Eamings 50,000 60,000 48,000 200,000 Income from Subsidiary 1,027,375 $ 1,027.375 $429,000 $429,000 Required: c. Prepare a consolidated balance sheet, income statement, and retained eamings statement for 20x9. Amounts to be deducted should be indicated with a minus sign.) Ch. 5 Graded Homework Assignment POWER CORPORATION AND SUBSIDIARY Consolidated Retained Earnings Statement Year Ended December 31, 20x9 Retained Eamings, January 1, 20x9 Income to Controlling Interest, 20x9 Dividends Declared, 20x9 Retained Earnings, December 31, 20X9