The following financial statements were prepared on December 31, Year 6. Additional Information Pearl purchased 80% of the outstanding voting shares of Silver for $4,600,000 on July 1 , Year 2 , at which time Silver's retained earnings were $510,000, and accumulated depreciation was $82,000. The acquisition differential on this date was allocated as follows: - 20% to undervalued inventory - 40% to equipment-remaining useful life 8 years - Balance to goodwill During Year 3, a goodwill impairment loss of $92,000 was recognized, and an impairment test conducted as at December 31 , Year 6 , indicated that a further loss of $42,000 had occurred. Amortization expense is grouped with cost of goods sold and impairment losses are grouped with administrative expenses. Silver owes Pearl $97,000 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.) Pear Consolidated Retai For the Year Ende \begin{tabular}{|lr|} \hline (Click to select) & \\ \hline \hline (Click to select) & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ Pearl Company Consolidated Balance Sheet December 31, Year 6 } \\ \hline Assets & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline Liabilities and Equity & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} (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.) (c) Calculate goodwill and non-controlling interest on the consolidated balance sheet at December 31, Year 6 , under the identifiab net assets method. (Omit $ sign in your response.) The following financial statements were prepared on December 31, Year 6. Additional Information Pearl purchased 80% of the outstanding voting shares of Silver for $4,600,000 on July 1 , Year 2 , at which time Silver's retained earnings were $510,000, and accumulated depreciation was $82,000. The acquisition differential on this date was allocated as follows: - 20% to undervalued inventory - 40% to equipment-remaining useful life 8 years - Balance to goodwill During Year 3, a goodwill impairment loss of $92,000 was recognized, and an impairment test conducted as at December 31 , Year 6 , indicated that a further loss of $42,000 had occurred. Amortization expense is grouped with cost of goods sold and impairment losses are grouped with administrative expenses. Silver owes Pearl $97,000 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.) Pear Consolidated Retai For the Year Ende \begin{tabular}{|lr|} \hline (Click to select) & \\ \hline \hline (Click to select) & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ Pearl Company Consolidated Balance Sheet December 31, Year 6 } \\ \hline Assets & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline Liabilities and Equity & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} (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.) (c) Calculate goodwill and non-controlling interest on the consolidated balance sheet at December 31, Year 6 , under the identifiab net assets method. (Omit $ sign in your response.)
