Required:

$($a$)$ Prepare the following Year $12$ consolidated financial statements:

$($i$)$ Income statement

$($ii$)$ Balance sheet

$($b$)$ Calculate goodwill impairment loss and non$-$controlling interest on the consolidated income statement for the year ended

December $31,$ Year $12,$ under the identifiable net assets method. $($Omit $ sign in your response.$)$

Goodwill impairment loss under identifiable net assets method

$

NCI on income statement under identifiable net assets method

$

$($c$)$ If Panet had used identifiable net assets method rather than the fair value enterprise method, how would this affect the debt$-$to$-$

equity ratio at the end of Year $12?$

Decreases

Increases $($d$)$ Prepare the consolidated financial statements using the worksheet approach. $($Input all amounts as positive values. For accounts

where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit

column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the

worksheet. Leave no cells blank $-$ be certain to enter $"$O$"$ wherever required. Omit $ sign in your response.$)$On January $1,$ Year $8,$ Panet Company acquired $40,000$ common shares of Saffer Corporation, a public company, for $$500,000.$ This purchase represented $8\%$ of the outstanding shares of Saffer. It was the intention of Panet to acquire more shares in the future in order to eventually gain control of Saffer.

On January $1,$ Year $10,$ Panet purchased an additional $135,000$ common shares of Saffer for $$1,890,000.$ Saffer$$s shareholders$$ equity section was as follows: