The following financial statements were prepared on December 31, 2021: Cash Inventory Property, plant & equipment Petty Inc. $ 42,500 112,500 277,500 Stock Inc. $ 22,500 27,500 297,500 Investment in Stock Inc. - at cost Total Assets Current Liabilities Common Shares Retained Earnings Total Liabilities and Equity 325,000 $ 757,500 $ 347,500 $ 34,000 437,500 $ 45,500 155,250 286,000 $ 347,500 146,750 $ 757,500 Petty Inc. Sales Gain on Sale of Land Dividend income Cost of sales Amortization expenses Administrative expense Income tax expense Net Income $ 475,000 20,000 495,000 247,500 43,500 11,000 25,000 $ 168,000 Stock Inc. $ 132,500 20,000 152,500 62,500 7,500 5,500 12,500 $ 64,500 Additional Information: . Petty purchased 80% of the outstanding voting shares of Stock for $325,000 on January 1, 2019, at which time Stock's retained earnings were $22,750, and common shares were $155,250. The fair values of Stock's net asset were equal to their fair value, except for the following: o Inventory = fair value was $3,500 greater than book value Equipment = fair value was $175,000 greater than book value - equipment had a remaining useful life seven years During 2021, a goodwill impairment loss of $25,000 was recognized. Impairments are grouped with amortization expense. During 2021, inventory sales from Petty to Stock were $12,500. At the end of the year, Stock's inventories contained merchandise purchased from Petty for $5,000 (Gross Profit of $1,500 was recognized on this inventory). During 2021, Stock sold a parcel of land to Petty for $77,500. Stock recorded a gain of $20,000 before taxes. Stock paid out $25,000 in dividends and Petty recorded $20,000 ($25,000*80%) of dividend revenue in 2021. Any impairment losses are grouped with administrative expenses. Assume a 40% tax rate Required: A. Calculate the amount of the acquisition differential and the amount of goodwill arising from this combination. Also, state any intercompany items/transactions. (7 marks) B. Calculate: i. Consolidated Net Income as well as the Amount Attributable to NCI and the Amount Attributable to Petty's Shareholders for the year ended December 31, 2021 (6 marks) ii. iv. V. vi. Consolidated NCI on the Balance Sheet at December 31, 2021 (4 marks) Consolidated Sales for the year ended December 31, 2021 (2 marks) Consolidated Cost of Goods Sold for the year ended December 31, 2021 (3 marks) Consolidated Income Tax Expense for the year ended December 31, 2021 (2 mark) Consolidated Inventory on the Balance Sheet at December 31, 2021 (2 marks)