The following financial statements were prepared on December 31, Year 6.

Additional Information
Pearl purchased 75% of the outstanding voting shares of Silver for $2,400,000 on July 1, Year 2, at which time Silver's retained earnings were $400,000, and accumulated depreciation was $60,000. The acquisition differential on this date was allocated as follows:
€¢ 30% to undervalued inventory
€¢ 40% to equipment-remaining useful life 8 years
€¢ Balance to goodwill
During Year 3, a goodwill impairment loss of $70,000 was recognized, and an impairment test conducted as at December 31, Year 6, indicated that a further loss of $20,000 had occurred. Amortization expense is grouped with cost of goods sold and impairment losses are grouped with administrative expenses. Silver owes Pearl $75,000 on December 31, Year 6.
Required:
(a) Prepare consolidated financial statements on 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 balance sheet at December 31, Year 6, under parent company extension theory.

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BALANCE SHEET Pearl Silver 300,000 200,000 2,000,000 3,000,000 (750,000) 2,400,000 $7,150,000 $ 100,000 Cash Accounts receivable Inventory Plant and equipment Accumulated depreciation Investment in Silver Company-at cost 420,000 2,690,000 (310,000) $2,900,000 Liabilities Common shares Retained earnings $ 900,000 2,850,000 3,400,000 $7,150,000 $ 300,000 1,600,000 1,000,000 $2,900,000 INCOME STATEMENT Sales Dividend income $4,000,000 150,000 4,150,000 2,500,000 320,000 80,000 250,000 3,150,000 $1,000,000 $1,000,000 Cost of sales Miscellaneous expenses Administrative expense Income tax expense 1,000,000 400,000 70,000 10,000 120,000 600,000 $ 400,000 Net income RETAINED EARNINGS STATEMENT $2,900,000 1,000,000 3,900,000 500,000 $3,400,000 $800,000 400,000 1,200,000 200,000 $1,000,000 Balance, January 1 Net income Dividends Balance, December 31