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

Pearl purchased $80\%$ ?of the outstanding voting shares of Silver for $$4,500,000$ ?on July $1,$ ?Year $2,$ ?at which time Silver's retained

earnings were $$505,000,$ ?and accumulated depreciation was $$81,000.$ ?The acquisition differential on this date was allocated as

follows:

$20\%$ ?to undervalued inventory

$30\%$ ?to equipment$$remaining useful life $8$ ?years

Balance to goodwill

During Year $3,$ ?a goodwill impairment loss of $$91,000$ ?was recognized, and an impairment test conducted as at December $31,$ ?Year $6,$

indicated that a further loss of $$41,000$ ?had occurred.

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

Silver owes Pearl $$96,000$ ?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.$)($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.$)$

$($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 $"$O$"$ ?wherever required. Omit $ sign in your

response.$)$cost $??$ ?sa$?$es

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

Liabilities

Common shares

Retained earnings

$

$

Goodwill

Non$-$controlling interest

$

$