The following financial statements were prepared on December $31,$ Year $6.$

BALANCE SHEET

Pearl Silver

Cash $ $430,000$ $ $230,000$

Accounts receivable $330,000$

Inventory $2,650,000550,000$

Plant and equipment $3,650,0003,990,000$

Accumulated depreciation $(880,000)(440,000)$

Investment in Silver Company $($at cost$)3,700,000$

$ $9,880,000$ $ $4,330,000$

Liabilities $ $669,000$ $ $651,000$

Common shares $4,150,0002,250,000$

Retained earnings $5,061,0001,429,000$

$ $9,880,000$ $ $4,330,000$

INCOME STATEMENT

Sales $ $4,650,000$ $ $1,650,000$

Dividend income $264,000$

$4,914,0001,650,000$

Cost of sales $2,630,000530,000$

Miscellaneous expenses $385,00083,000$

Administrative expense $93,00023,000$

Income tax expense $315,000185,000$

$(3,423,000)(821,000)$

Net income $ $1,491,000$ $ $829,000$

RETAINED EARNINGS STATEMENT

Balance, January $1$ $ $4,200,000$ $ $930,000$

Net income $1,491,000829,000$

$5,691,0001,759,000$

Dividends $(630,000)(330,000)$

Balance, December $31$ $ $5,061,000$ $ $1,429,000$

Additional Information

Pearl purchased $80\%$ of the outstanding voting shares of Silver for $$3,700,000$ on July $1,$ Year $2,$ at which time Silver$$s retained earnings were $$465,000,$ and accumulated depreciation was $$73,000.$ The acquisition differential on this date was allocated as follows:

$30\%$ to undervalued inventory

$40\%$ to equipment$$remaining useful life $8$ years

Balance to goodwill

During Year $3,$ a goodwill impairment loss of $$83,000$ was recognized, and an impairment test conducted as at December $31,$ Year $6,$ indicated that a further loss of $$33,000$ had occurred.

Amortization expense is grouped with cost of goods sold and impairment losses are grouped with administrative expenses.

Silver owes Pearl $$88,000$ on December $31,$ Year $6.$

Required:

$($a$)$ Prepare consolidated financial statements on December $31,$ Year $6.($Input all amounts as positive values except accumulated depreciation which should be indicated by minus sign. Omit $ sign in your response.$)$

Pearl Company

Consolidated Retained Earnings Statement

For the Year Ended December $31,$ Year $6$

$($Click to select$)$

$

$($Click to select$)$

$($Click to select$)$

$($Click to select$)$

$

$($b$)$ Calculate goodwill impairment loss and non$-$controlling interest on the consolidated income statement for the year ended December $31,$ Year $6,$ under the identifiable net assets method. $($Omit $ sign in your response.$)$

Goodwill impairment loss $

NCI $$ identifiable net assets method

$($c$)$ Calculate goodwill and non$-$controlling interest on the consolidated balance sheet at December $31,$ Year $6,$ under the identifiable net assets method. $($Omit $ sign in your response.$)$

Goodwill $$ identifiable net assets method $

NCI $$ identifiable net assets method

$($d$)$ Prepare the consolidated financial statements using the worksheet approach. $($Input all amounts as positive values except accumulated depreciation which should be indicated by minus sign. All values in the "Entry" columns should be entered 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 $"0"$ wherever required. Omit $ sign in your response.$)$

Consolidated Financial Statement Working Paper

Pearl Company

Consolidated Financial Statements

December $31,$ year $6$

Entries

Pearl Silver Dr$.$ Cr$.$ Consolidated

Income Statements $-$ Year $6$

Sales $

$

$

$

$

Dividend income

Cost of sales

Miscellaneous expenses

Administrative expense

Income tax expense

Total expenses

Net income $

$

$

Attributable to:

Pearl's Shareholders

$

Non$-$controlling interest

$

$

$

Retained Earnings Statements $-$ Year $6$

Balance, January $1$ $

$

$

$

Net income

Dividends

Balance, December $31$ $

$

$

$

$

Statement of Financial Position $-$ December $31,$ Year $6$

Cash $

$

$

$

$

Accounts receivable

Inventory

Plant and equipment

Accumulated depreciation

Investment in Silver Company

Acquisition differential

Goodwill

$

$

$

Liab