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Large Ltd. purchased 75% of Small Company on January 1, Year 6, for $660,000, when the statement of financial position for Small showed common shares of $420,000 and retained earnings of $120,000. On that date, the inventory of Small was undervalued by $42,000, and a patent with an estimated remaining life of five years was overvalued by $62,000. Small reported the following subsequent to January 1, Year 6: Year 6 Year 7 Year Profit (Loss) $ 88,000 (37,000) 92,000 Dividends $27,000 12,000 42,000 A test for goodwill impairment on December 31, Year 8, indicated a loss of $19,500 should be reported for Year 8 on the consolidated income statement. Large uses the cost method to account for its investment in Small and reported the following for Year 8 for its separate-entity statement of changes in equity: Retained earnings, beginning Profit Dividenda Retained earnings, and $ 520,000 220,000 (68,000 $ 672,000 (b) Compute the following on the consolidated financial statements for the year ended December 31, Year 8: (Omit $ sign in your response.) m) Goodwill Goodwill (1) Non-controlling interest on the statement of financial position Non-controlling interest (H) Retained earnings, beginning of year Retained earnings, beginning of year (iv) Profit attributable to Large's shareholders Profit attributable to Large's shareholders (1) Profit attributable to non-controlling interest Profit attributable to non-controlling interest (c) Now assume that Large is a private entity, uses ASPE, and chooses to use the equity method to report its investment in Small. (1) Prepare Large's journal entries for each year related to its investment in Small. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Year 6 Answer is not complete. No General Journal Debit Credit Date Year 6 1 Investment in Small Cash 2 Year 6 Investment in Small Equity method income 3 Year 6 Cash Investment in Small 4 Year 6 Equity method income Investment in Small Year 7 Answer is not complete. General Journal No Debit Credit Date Year 7 1 Equity method loss Investment in Small N Year 7 Cash Investment in Smal | 3 Year 7 Investment in Small Equity method loss Year 8 Answer is not complete. General Journal No Date Debit Credit 1 Year B Investment in Small Equity method income 2 Year 8 Cash Investment in Small 3 Year 8 Equity method income Investment in Small (1) Determine the investment in Small at December 31, Year 8. (Omit $ sign in your response.) Investment in Small under equity method $

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