Problem 7-16 Financial statements of Champlain Lid . and its 80 %-owned subsidiary Samuel Ltd . as at December 31 Year 8, are presented below. STATEMENTS OF FINANCIAL POSITION at December 31, Year B Champlain Samuel Property, plant, and equipment $ 198,000 $ 104,000 Accumulated depreciation (86,000 ) (30,000) Investment in Samuel - at cost 129,200 Inventories 35,000 46,000 Accounts receivable 60,000 55,000 Cash 18,100 20,600 $354,300 $ 195,600 Ordinary shares $225,000 $50,000 Retained earnings 68,300 70,000 Dividends payable 5,000 5,50D Accounts payable 56,000 70,100 $ 354,300 $ 195,600 STATEMENTS OF INCOME AND RETAINED EARNINGS For the year ended December 31, Year B Champlain Samuel Sales $535,400 $270,000 Dividend and miscellaneous income 9,900 545,300 270,000 Cost of sales 364,000 206,000 Selling expense 78,400 24,100 Administrative expense (including depreciation and 45,300 20,700 goodwill impairment Income taxes 13,800 6.200 502,500 257,000 Profit 12,800 13,000