Accounting Please Help: Answer ALL Required as per below (provide excel solution file please, thank you very much)

1) Prepare a consolidated statement of income and retained earnings for Palace and its subsidiary Shack for the year ended December 31, 2012.

2) Calculate the values that would appear in the consolidated statement of financial position of Palace and its subsidiary Shack as at December 31, 2012 for each of the following: a) property, plant and equipment (net), b) inventory; c) goodwill and d) noncontrolling interest

On December 31, 2010, Palace Ltd. acquired 75% of the common shares of Shack Inc. for $1,350,000. The carrying value of Shacks identifiable net assets on that date totaled $1,470,000. Shacks share capital was $800,000, it had contributed surplus of $200,000 and its retained earnings was $470,000. The fair values of Shacks identifiable assets and liabilities were equal to their book values except that a piece of land was undervalued by $250,000 and some buildings with a remaining useful life of fifteen years were overvalued by $60,000.

The statements of income and retained earnings of the two companies for 2012 are as follows:

PALACE LTD. AND SHACK INC.

Statements of Income and Retained Earnings for the year ended December 31, 2012

	Sales	PALACE $ 12,084,000		SHACK $ 3,604,000
	Investment income	164,000		-
	Other income	740,000		300,000
		12,988,000		3,904,000
	Cost of goods sold	6,880,000		1,770,000
	Amortization expense	650,000		312,000
	Other expenses	3,058,000		1,192,000
	Income tax expense	960,000		252,000
		11,548,000		3,526,000
	Net income	1,440,000		378,000
	Retained earnings, January 1	2,090,000		536,000
	Dividends	(200,000)		(100,000)
	Retained earnings, December 31	$ 3,330,000		$ 814,000

The following figures were extracted from the companies statements of financial position as at December 31, 2012:

Inventory $ 1,680,000 $ 470,000 Property, plant and equipment (net)

including land 6,768,000 3,290,000

Additional information:

Goodwill was assessed at December 31, 2012, and valued at $54,000. There had not been any goodwill impairment before 2012.

During 2012, Palace earned $420,000 in management fees from Shack. The cost to Palace to provide management services to Shack amounted to $350,000 during 2012.

Palace accounts for its investment in Shack using the cost method and values the non-controlling interest in Shack based on the fair value of Shacks identifiable net assets on the acquisition date (parent company extension approach).