Question: On January 1 Year 5 Pic Company acquired 7 500 ordinary

On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $600,000. On January 1, Year 6, Pic Company acquired an additional 2,000 ordinary shares of Sic Company for $166,000. On January 1, Year 5, the shareholders’ equity of Sic was as follows:
Ordinary shares (10,000 no par value shares issued)... $200,000
Retained earnings................ 300,000
......................... $500,000
The following are the statements of retained earnings for the two companies for Years 5 and 6:
Additional Information
• Pic uses the cost method to account for its investment in Sic.
• Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 31, Year 7. Neither company has any customer contracts recorded on their separate-entity records.
• There were no unrealized profits from intercompany transactions since the date of acquisition.
(a) Calculate consolidated profit attributable to Pic’s shareholders for Year 6.
(b) Calculate the following account balances for the consolidated statement of financial position at December 31, Year 6:
(i) Customer contracts
(ii) Non-controlling interest
(iii) Retained earnings

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