Required

$($a$)$ Did the loss on the sale of equipment shown above result from a sale to an affliate or a nonaffliate? Explain.

$($b$)$ Explain why the amortization of bond premium is treated as a deduction from net income in arriving at net cash flow from

operations.

$($c$)$ Determine the net income of Pritchard Windows for Year $5.($Assume no intercompany transactions or unrealized profits and

that the only change in the undepleted acquisition differential during the year was the goodwill impairment loss.$)$

$($d$)$ Explain why dividends to noncontrolline shareholders are not shown as a dividend in the consolidated retained earnines

statement but are shown as a distribution of cash in the consolidated cash flow statement.

$($e$)$ Determine the amount of dividends paid by Pritchard Windows in Year $5.$