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 inc Company on January 1, Year 4. On that date, the negative acquisition differential of $42,500 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 $89,600 to patents to be amortized over eight years. The preferred shares of B Company are non-cumulative. 

• On January 1, Year 6, B Company's accumulated depreciation was $450,000. 

• On January 1, Year 7, B Company purchased its 40% interest in C Company for $99,320. The carrying amount of C Company's identifiable net assets approximated fair value on this date and C Company's accumulated depreciation was $52,700.

• The inventory of B Company contains a profit of $7,600 on merchandise purchased from A Company.  The inventory of A Company contains a profit of $6,900 on merchandise purchased from C Company. 

• On December 31, Year 7, A Company owes $33,000 to C Company and B Company owes $4,000 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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А Cотрany $ 119,100 226,000 303,000 69,570 1,068,990 3,000,000 В Сотрany С Cотрany $ 21,300 57,000 71,000 Cash 50,600 126,000 232,000 99,320 Accounts receivable Inventory Investment in C Investment in B Property, plant, and equipment Accumulated depreciation 240,000 2,300,000 (990,000) $3,796,660 $ 120,000 800,000 (580,000) $2,227,920 $ 101,000 700,000 50,000 400,000 908,920 68,000 (101,000) $288,300 $ 7,000 Accounts payable Bonds payable Preferred shares Common shares 1,200,000 1,601,860 131,800 200,000 48,300 33,000 Retained earnings, January 1 Net income Dividends (57,000) $3,796,660 - $2,227,920 $288,300