Question 1 {13 marks) Text, Problem 5-5, pages 284-285 Pen Ltd. acquired an 85% interest in Silk Corp. on December 31, Year 1, for $646,000. On that date, Silk had common shares of $500,000 and retained earnings of $100,000. The imputed acquisition differential was allocated $70,000 to inventory, with the balance to patents being amortized over ten years. Silk reported prot of $30,000 in Year 2 and $52,000 in Year 3. While no dividends were declared in Year 2, Silk declared a dividend of $15,000 in Year 3. Pen, which uses the cost method, reported a prot of $28,000 in Year 2 and a loss of $45,000 in Year 3. Pen's retained earnings on December 31, Year 3, were $91,000. Pen uses the fair value enterprise method to determine the carrying value of the noncontrolling interest in its subsidiary. Required: Compute the following: a} b] c} d] e} 1'] noncontrolling interest in prot for Year 2 and for Year 3; consolidated prot attributable to Pen's shareholders for Year 2 and for Year 3; consolidated retained earnings at December 31, Year 3; noncontrolling interest (on the consolidated balance sheet] at December 31, Year 3; investment in Silk at December 31, Year 3, if Pen had used the equity method to account for its investment in Silk; Consolidated patents at December 31, Year 3