A Company owns 75% of B Company and 40% of C Company. B Company owns 40% of C Company. The following information was assembled at December 31, Year 7.

Additional Information
€¢ A Company purchased its 40% interest in C Company on January 1, Year 4. On that date, the negative acquisition differential of $10,000 on the 40% investment was allocated to equipment with an estimated useful life of 10 years.
€¢ A Company purchased its 75% of B Company€™s common shares on January 1, Year 6. On that date, the 100% implied acquisition differential was allocated $40,000 to buildings with an estimated useful life of 20 years, and $53,333 to patents to be amortized over 8 years. The preferred shares of B Company are non-cumulative.
€¢ On January 1, Year 7, B Company purchased its 40% interest in C Company for $92,000. The carrying amount of C Company€™s identifiable net assets approximated fair value on this date.
€¢ The inventory of B Company contains a profit of $2,400 on merchandise purchased from A Company. The inventory of A Company contains a profit of $3,000 on merchandise purchased from C Company.
€¢ On December 31, Year 7, A Company owes $20,000 to C Company and B Company owes $2,000 to A Company.
€¢ Both A Company and B Company use the equity method to account for their investments but have made no equity method adjustments in Year 7.
€¢ An income tax rate of 40% is used for consolidation purposes.
Required:
(a) Calculate non-controlling interest€™s share of consolidated net income for Year 7.
(b) Prepare a consolidated statement of retained earnings for Year 7.
(c) Prepare a consolidated balance sheet as at December 31, Year 7. Show all calculations.

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Cash Accounts receivable Inventory Investment in C Investment in E Property, plant, and equipment Accumulated depreciation A Company $117,800 200,000 277,000 85,000 409,250 2,800,000 B Company $ 49,300 100,000 206,000 92,000 C Company 20,000 44,000 58,000 220,000 $252,000 $ 2,000 1,500,000 (1,120,000(593,000) $1,354,300 $2,769,050 $ 206,000 1,000,000 Accounts payable Bonds payable Preferred shares Common shares Retained earnings, January 1 Net income Dividends 1,200,000 314,250 118,800 (70,000) $2,769,050 $88,000 700,000 50,000 400,000 61,000 55,300 200,000 30,000 20,000 $252,000 $1,354,300