I am close but can't make Assets = Liabilities + Equity, and I can not find the NCI, Goodwill impairment loss, shareholders equity attributable.

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O'Sullivan Corp. purchased 75% of the outstanding shares of Rabb Ltd. on January 1, Year 3, at a cost of $126,360. Non-controlling interest was valued at $47,000 by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $56,000 and retained earnings of $36,000. Fair values were equal to carrying amounts for all the net assets except the following: Inventory Equipment Software Software Goodwill Carrying Amount $36,000 46,200 The equipment had an estimated remaining useful life of six years on January 1, Year 3, and the software was to be amortized over ten years. Foxx uses the cost method to account for its investment. The testing for impairment at December 31, Year 6, yielded the following fair values: $ 9,200 49,887 The impairment loss on these assets occurred entirely in Year 6. Amortization expense is grouped with administrative expenses, and impairment losses are grouped with miscellaneous expenses. The parent's share of the goodwill noted above is $33,874. The following are the financial statements of O'Sullivan Corp. and its subsidiary Rabb Ltd. for Year 6: Fair Value $ 22,000 72,000 18,000 BALANCE SHEETS At December 31, Year 6 Cash Accounts receivable Note receivable Inventory Equipment, net Land Investment in Rabb Bank indebtedness Accounts payable Notes payable Common shares Retained earnings O'Sullivan Corp. 46,000 72,000 250,000 180,000 126,360 $674,360 $120,000 76,000 46,000 156,000 276,360 $674,360 Rabb Ltd. $ 10,600 36,000 46,000 50,000 82,000 36,000 $ 260,600 $ 66,000 56,000 138,600 $ 260,600 O'Sullivan Corp. purchased 75% of the outstanding shares of Rabb Ltd. on January 1, Year 3, at a cost of $126,360. Non-controlling interest was valued at $47,000 by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $56,000 and retained earnings of $36,000. Fair values were equal to carrying amounts for all the net assets except the following: Inventory Equipment Software Software Goodwill Carrying Amount $36,000 46,200 The equipment had an estimated remaining useful life of six years on January 1, Year 3, and the software was to be amortized over ten years. Foxx uses the cost method to account for its investment. The testing for impairment at December 31, Year 6, yielded the following fair values: $ 9,200 49,887 The impairment loss on these assets occurred entirely in Year 6. Amortization expense is grouped with administrative expenses, and impairment losses are grouped with miscellaneous expenses. The parent's share of the goodwill noted above is $33,874. The following are the financial statements of O'Sullivan Corp. and its subsidiary Rabb Ltd. for Year 6: Fair Value $ 22,000 72,000 18,000 BALANCE SHEETS At December 31, Year 6 Cash Accounts receivable Note receivable Inventory Equipment, net Land Investment in Rabb Bank indebtedness Accounts payable Notes payable Common shares Retained earnings O'Sullivan Corp. 46,000 72,000 250,000 180,000 126,360 $674,360 $120,000 76,000 46,000 156,000 276,360 $674,360 Rabb Ltd. $ 10,600 36,000 46,000 50,000 82,000 36,000 $ 260,600 $ 66,000 56,000 138,600 $ 260,600

Answer rating: 100% (QA)

To calculate the goodwill impairment loss and noncontrolling interest on the consolidated income statement for the year ended December 31 Year 6 under ... View the full answer