Prepare a schedule as demonstrated in the course and textbook to calculate consolidated net income for year 6 and show attribution

(Hint you might wish to consult the Palin and Storm video and/er video script before you try the problem) NOTE: please prepare schedules as demonstrated in the Palm and Storm video and the course text. On January 1, Year 4, Grant Corporation bought 1,000 (10%) of the outstanding common shares of Lee Company for $70,080 cash. On that date, Lee had $25,000 of common shares outstanding and $20,400 retained comings. Also on that date, the carrying amount of each of Lee's identifiable assets and liabilities was equal to its fair value except for the following: 20 60 The potent had an estimated useful life of So years at January 1, Year & and the entire Inventory was sold during Year 4. Grant were the cost method to account for I's Investment. Additional Information . The recoverable (unimpaired) amount for goodwill was determined to be $10,000 on December 31, Year 6. The goodwill impairment loss occurred in Year 6. Grant's accounts rec contains $30,000 owing from Lee. Amortization expense is grouped with distribution expenses and impairment losses are grouped with other expenses. The following are the separate-entity financial statements of Grent and Lee as at December 31, Year s. BALANCE SHEETS December 31, Year 6 Grant Lee Assets Cash $ 5,000 $ 18,000 Accounts receivable 185,000 82.000 Inventory 310,000 100,000 Investment in Lee 70,000 Equipment, net 230,000 205,000 Patent, net 2,000 $800,000 $407,000 Liabilities and Shareholders' Equity Accounts payable $190,000 $195,000 Other accrued liabilities 60,000 50,000 Income taxes payable 80,000 72,000 Common shares 170,000 25,000 Retained earnings 300,000 65.000 $800,000 $407,000 INCOME STATEMENT Year ended December 31, Year 6 Grant Lee Sales $900,000 $360,000 Cost of goods sold (340,000) (240,000) Gross margin 560,000 120,000 Distribution expense (30,00g) (25,000) Other expenses (180,000) (56,000) Income tax expense (120,000) (16,000) Net income $230,000 $ 23,000