The X Company purchased 80% of the outstanding voting shares of the Y Company for $3,300,000 on July 1^st. 2018, at which time Y's retained earnings were $445,000 , accumulated depreciation $69,000 and common stock $2,050,000.

Below is the financial statements for the year ending December 31^st.2022:-

BALANCE SHEETS

As at December 31^st.2022

X.................................Y

Cash.......................................................................................$ 390,000......................$ 190,000

Accounts receivable............................................................. 290,000..............................0..........

Inventory................................................................................2,450,000......................... 510,000

Plant and equipment............................................................3,450,000.........................3,590,000

Accumulated depreciation...................................................( 840,000)......................( 400,000)

Investment in the Y Company at cost..................................3,300,000....................................

TOTAL ASSETS........................................................................$9,040,000....................$3,890,000

Liabilities..................................................................................$ 737,000.....................$ 543,000

Common Stock........................................................................ 3,750,000.......................2,050,000

Retained Earnings.................................................................. 4,553,000..................1,297,000

TOTAL LIABILITIES & OWNERS' EQUITY..............................$9,040,000..................$3,890,000

INCOME STATEMENTS

For the Year ending December 31^st.2022

X..........................................Y

Sales....................................................................................................$4,,450,000.................$1,450,000

Dividend income................................................................................. 232,000.................................

$ 4,682,000..................$1,450,000

Cost of sales........................................................................................ 2,590,000................. 490,000

Miscellaneous expenses.................................................................... 365,000................. 79,000

Administrative expenses..................................................................... 89,000................... 19,000

Income tax expense............................................................................... 295,000................ 165,000

3,339,000.................. 735,000

NET INCOME...........................................................$1,343,000.............$ 697,000

RETAINED EARNINGS STATEMENTS

X.................................Y

Balance, January 1, 2022...................................................................$3,800,000..........................$ 890,000

Net Income............................................................................................1,343,000........................ 697,000

5,143,000...............1,587,000

Dividends................................................................................................ 590,000........................290,000

Retained Earnings, December 31^st.2022...........................................$4,553,000................$1,297,000

Additional Information:-

i. The inventory was undervalued by an amount which was equal to 20% of the acquisition differential and equipment by 40% with a remaining life of 8 years.

ii. During 2019, a goodwill impairment loss of $79,000 was recognized, and an impairment test conducted as at December 31^st. 2022 indicated a further impairment loss of $29,000 had occurred.

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

iv. Y owes X $84,000 on December 31^st.2022.

Compute the following balances for the consolidated income statement for year ending December 31^st.2022:-

a. Cost of goods sold

b. Administrative expenses

c. Non-controlling interest for the income statement