On January 1, 20X2, Peter Limited purchased 70% of the outstanding voting common shares of Susan Limited at a cost of $147,000. At acquisition date, the carrying value of Susan Limited was $161,000, inventory was undervalued by $2,500, and depreciable capital assets were undervalued by $7,500. Relevant information for 20X5 is shown in the schedule below.

Required

a. Calculate non-controlling interest in net income for 20X5 assuming consolidation is appropriate.

b. Calculate non-controlling interest in the consolidated statement of financial position as of the end of 20X5.

c. Calculate consolidated net income for 20X5 assuming a 10-year remaining life at acquisition date for capital assets and straight-line depreciation. Note that Peter Limited uses the cost method and that Susan Limited paid dividends during the year.

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Reported at End of 20X5 Peter Susan Net income and comprehensive income $ 44,000 $ 11,000 Dividends paid 4,000 1,000 $ 40,000 $170,800 Current assets Investment in Susan (at cost) 139,200 1 60,000 $200,000 $ 30,000 Capital assets (net) 330,000 $640,000 Liabilities $140,000 Common shares 150,000 400,000 Retained earnings (end) 100,000 20,000 $640,000 $200,000