On July 1, Year 4, Aaron Co. purchased 80% of the voting shares of Bondi Ltd. For $543,840. The statement of financial position of Bondi on that date follows. The accounts receivable of Bondi were collected in October Year 4, and the inventory was completely sold by May Year 5. Bondi's fixed assets had a remaining life of 15 years on July 1, Year 4, and the bonds payable mature on June 30, Year 8. The bonds were issued on July 1, Year 1. The stated rate of interest on the bonds is 6% payable semi-annually. The market rate of interest was 8% on July 1, Year 4. Tests for impairment of goodwill indicated a loss of $8,329 in Year 5 and $5,553 in Year 6.

The financial statements for Aaron and Bondi at December 31, Year 6, are presented below. Aaron has used the equity method to account for its investment in Bondi.

Required:
(a) Prepare the consolidated financial statements for the year ended December 31, Year 6.
(b) Calculate goodwill impairment loss and non-controlling interest on the consolidated income statement for the year ended December 31, Year 6, under parent company extension theory.
(c) Calculate goodwill and non-controlling interest on the consolidated statement of financial position at December 31, Year 6, under the parent company extension theory.

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BONDI LTD STATEMENT OF FINANCIAL POSITION as at July 1, Year 4 Carrying amount $540,000 180,000 120,000 96,000 $936,000 Fair value Plant assets (net) Inventory Accounts receivable Cash $450,000 228,000 144,004 96,000 Ordinary shares Retained earnings Bonds payable Current liabilities $120,000 508,800 200,000 107,200 $936,000 186,534 107,200 STATEMENTS OF FINANCIAL POSITION Aaron 720,000 540,000 520,319 250,666 300,000 180,000 120,000 Bondi Plant assets (net) Investment in Bondi Other investments Inventory Accounts receivable Cash 276,000 114,000 84,000 $1,014,000 $2,090,985 Ordinary shares Retained earnings Bonds payable Current liabilities 300,600 120,000 558,200 200,000 135,800 $2,090,985 $1,014,000 1,295,185 315,000 180,200 INCOME STATEMENTS $1,261,000$%1,200,000 Sales Investment income from Bondi Income from other investments 4,394 25,000 1,290,394 880,000 (40,000) 60,000 37,000 227,000 1,164,000 $ 126,394 1,200,000 1,005,000 15,000 54,000 26,400 91,200 1,191,600 $ 8,400 Raw materials used Change in inventory Depreciation Interest expense Other expenses Profit