*Problem 5-13 LO2, 3, 4, 8 The following financial statements were prepared on December 31, Year 6. BALANCE SHEET Pearl Silver Cash $ 390,000 $ 190,000 Accounts receivable 290,000 Inventory 2.450,000 510,000 Plant and equipment 3.450,000 3,590,000 Accumulated depreciation (840.000) (400,000) Investment in Silver Company (at cost) 3.30D,000 59.040,000 $3,890,000 Liabilities $ 737,000 $ 543,000 Common shares 3,750,000 2,050,000 Retained carnings 4.553,000 1,297,000 $9.040,000 $3,890,000 INCOME STATEMENT Sales $4.450,000 $1,450,000 Dividend income 232,000 4.682,000 1,450,000 Cost of sales 2.590,000 490,000 Miscellaneous expenses 365,000 79,000 Administrative expense 89,000 19,000 Income tax expense 295,000 165,000 3.339,000 753,000 Net income $1.343,000 $ 697,000 RETAINED EARNINGS STATEMENT Balance, January 1 $3.800,000 $ 890,000 Net income 1,343,000 697,000 5,143,000 1,587,000 Dividends 590,000 290,000 Balance, December 31 $4.553,000 $1,297,000 Additional Information Pearl purchased 80%% of the outstanding voting shares of Silver for $3,300,000 on July 1, Year 2, at which time Sil- ver's retained earnings were $445,000, and accumulated depreciation was $69,000. The acquisition differential on this date was allocated as follows: . 20% to undervalued inventory 40% to equipment-remaining useful life 8 years Balance to goodwillDuring Year 3, a goodwill impairment loss of $79,000 was recognized, and an impairment test conducted as at December 31, Year 6, indicated that a further loss of $29,000 had occurred. Amortization expense is grouped with cost of goods sold and impairment losses are grouped with administra- tive expenses. Silver owes Pearl $84,000 on December 31, Year 6. Required (a) Prepare consolidated financial statements on December 31, Year 6. (b) Calculate goodwill impairment loss and non-controlling interest on the consolidated income statement for the year ended December 31, Year 6, under the identifiable net assets method. (c) Calculate goodwill and non-controlling interest on the consolidated balance sheet at December 31, Year 6, under the identifiable net assets method. *[dj Prepare the consolidated financial statements using the worksheet approach. excel