This is a consolidation question:

Paper Corp. purchased ?0% of the outstanding shares of Sand Ltd. on January 1, Year 2, at a cost of $81535. Paper has always used the equity method to account for its investments. On January 1, Year 2, Sand had common shares of $50,000 and retained earnings of $29,?50, and fair values were equal to carrying amounts for all its net assets, except inventory {fair value was $5,200 less than carrying amou nt} and equipment (fair value was $11400 greater than carrying amount). The equipment, which is used for research, had an estimated remaining life of six years on January 1, Year 2. The following are the nancial statements of Paper Corp. and its subsidiary Sand Ltd. as at December 31, Year 5: BALAIII SHEETS At Decelber 31, Year 5 Paper Sand Cash $ $ 22,889 Accounts receivable 44,809 32,789 Note receivable 31,306 Inventory 84,609 58,889 Equipment (net) 292,860 82,889 Land 191,999 42,999 Investment in Sand $747,434 $259,599 Bank indebtedness $172,145 $ Accounts payable 74,809 58,589 Notes payable 31,889 Common shares 158,800 58,869 Retained earnings 319,539 158,808 $747,434 $253,599 IIIIIHE STATEMENTS For the year ended December 31, Year 5 Paper Sand Sales $ 846,000 $ 355,?30 Management 'Fee revenue 25,200 Equityr method income from Sand 2,362 Interest income 3,180 Gain on sale of land 18,300 874,062 379,680 Cost: of sales 507,600 243,300 Research and development expenses 46,000 16,300 Interest expense 19,600 Miscellaneous expenses 118,000 32,300 Income 'taxes 72,660 34,512 763,360 32?,912 Net income $ 110,202 $ 51,?68 Additional Information During Year 5, Sand made a cash payment of $2,100 per month to Paper for management fees, which is included in Sand's Miscellaneous expenses. During Year 5, Paper made intercompany sales of $110,000 to Sand. The December 31, Year 5, inventory of Sand contained goods purchased from Paper amounting to $33,000. These sales had a gross prot of 35%. On April 1, Year 5, Paper acquired land from Sand for $31,800. This land had been recorded on Sand's books at a canying amount of $21,000. Paper paid for the land by signing a $31,800 note payable to Sand, bearing yearly interest at 10%. Interest for Year 5 was paid by Paper in cash on December 31, Year 5. This land was still being held by Paper on December 31, Year 5. The value of consolidated goodwill remained unchanged from January 1, Year 2, to July Year 5. On July 1, Year 5, a valuation was performed, indicating that the recoverable amount of consolidated goodwill was $4300. During the year ended December 31, Year 5, Paper paid dividends of $80,000 and Sand paid dividends of $20,000. Sand and Paper pay taxes at a 40% rate. Assume that none of the gains or losses were capital gains or losses. Required: (a) Prepare, in good form, a calculation of goodwill and any undepleted acquisition differential as of December 31, Year 5. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.) Balance Changes to Balance January 1, Year 2 Year 2-4 Year 5 Dec. 31, Year 5 Inventory $ Equipment Goodwill $ ${b} Prepare Paper's consolidated income statement for the year ended December 31, Year 5. with expenses classied by function. [Round your answer to nearest whole dollar.} Total expenses 0 :IQ Attributable to: Shareholders of Paper Noncontrolling interest {c} Calculate the following balances that would appear on Paper's consolidated balance sheet as at December 31, Year 5: {Leave no cells blank - be certain to enter "0" wherever required. Omit 5 sign in your response} {i} Invento ry Inventory $ |:| {ii} Land Land $ {iii} Notes payable Notes payable $ (iv) Non-controlling interest Non-controlling interest 5 Iv) Common shares Common shares $ {d} Assume that an independent Jusiness valuator valued the noncontrolling interest at $36,350 at the date of acquisition. Calculate goodwill impairment loss and prot attributable to noncontrolling interest for the year ended December 31, Year 5. (Omit $ sign in your tesponse.) Goodwill impairment 1055 $ Profit attributable to noncontrolling interest 5