There were no any intercompany transactions between Florence and Gillian during 2022 and 2023. On June 30, 2023, Gillian resold the acquisition date undervalued building to an external third party for $1.6 million. Book value of that building was 1,540,000, and the fair value was 1,980,000. And no dividends were paid or declared by both companies. The statements of comprehensive income and statements of financial position for the year ended December 31, 2023 for both companies are shown below:

Information relating to undervalued and overvalued identifiable assets of Gillian at acquisition date are listed as follows:

- Remaining useful life of the undervalued buildings was 11 years with no salvage value

- Remaining useful life of the undervalued intangible assets was 4 years

- Half of the undervalued inventory was sold in 2022 and the remaining half was sold in 2023.

- The impaired accounts receivable was also written off by Gillian in its account during the year end of 2022.

(a) With reference to the accounting standard, Florence may elect to use either full or partial goodwill method in accounting for the non-controlling interests of Gillian in the consolidated statements. Determine the acquisition-date goodwill in both methods. Florence elected to use the full goodwill method in accounting for the non-controlling interests of Gillian in the consolidated statements.

(b) Prepare necessary journal entries that Florence recorded in its book on December 31, 2021 related to its acquisition over Gillian.

(c) Prepare necessary consolidation entries for the preparation of the consolidated statements for the year ended December 31, 2021.

(d) Retained earnings of $4,900,000 is reported in Florences statement of financial position at December 31, 2021. Net income for the year ended December 31, 2021 of Florence and Gillian are $500,000 and $300,000, respectively. No dividends were declared by both companies. What amount of the retained earnings should be reported in the consolidated statement of financial position at December 31, 2021?

\begin{tabular}{|lrrr|} Share Premium & 15,785 & & 2,300 \\ Retained Earnings & 6,000 & 2,000 \\ Total Equity & 22,600 & & 4,500 \\ \cline { 2 - 3 } & & 45,000 & 2800 \\ \hline \end{tabular}