Required:

a) Calculate and show the supporting calculation of the goodwill that was inherited in the purchase price of Minor Ltd.(5 marks)

b) Calculate and show the schedule of the amortization of acquisition differential (including goodwill impairment) and intercompany transactions that will be adjusted in year 2015.(10 marks)

c) Calculate and show the supporting calculation of the consolidated net income for the year ended December 31, Year 5 and prepare a consolidated statement of income for the year ended December 31, Year 5. (19.5 marks)

d) Calculate only the balance of the consolidated retained earnings and NCI as of December 31, Year 5.(8 marks)

e) Prepare a consolidated statement of financial position as at December 31, Year 5.Show supporting calculations. (12.5 marks)

Additional Information 1) At the date of acquisition, it was agreed that the fair values of all Minor Ltd.'s assets and liabilities were equal to their carrying amounts, except for the following: acquisition date. amounts: - Year 1 - $10,500; and - Year 5 - $5,200. 31 , Year 5 . Minor Ltd. earns a gross margin of 35% on its intercompany sales. December 31, Year 5. Major Inc. earns a gross margin of 25% on its intercompany sales. its "Other Revenue" account. 6)In Year 5, Major Inc. sold land that originally cost $100,000 to Major Inc. for $125,000. The land is still owned by Minor Ltd. 7) Major Inc. uses the cost method of accounting for its long-term investment. 8) Both companies pay taxes at the rate of 20%