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(X) Inc. purchased 80% of the outstanding voting shares of (Y) for $360,000 on July 1, 2017. On that date, (Y) had common shares and retained earnings worth $180,000 and $90,000, respectively. The equipment had a remaining useful life of 5 years from the date of acquisition. Y's bonds mature on July 1, 2027. Both companies use straight line amortization, and no salvage value is assumed for assets. The trademark is assumed to have an indefinite useful life. Goodwill is tested annually for impairment. The balance sheets of both companies, as well as Y's fair market values on the date of acquisition are disclosed below:

	(X)	(Y)	(Y)
	(carrying value)	(carrying value)	(fair value)
Cash	$800,000	$245,000	$245,000
Accounts Receivable	$240,000	$40,000	$40,000
Inventory	$60,000	$45,000	$50,000
Equipment (net)	$900,000	$80,000	$72,000
Trademark		$90,000	$193,000
Total Assets	$2,000,000	$500,000
Current Liabilities	$200,000	$160,000	$160,000
Bonds Payable	$260,000	$70,000	$40,000
Common Shares	$900,000	$180,000
Retained Earnings	$640,000	$90,000
Total Liabilities and Equity	$2,000,000	$500,000

The following are the financial statements for both companies for the fiscal year ended June 30, 2020: Income Statements:

	(X)	(Y)
Sales	$640,000	$240,000
Investment Revenue	$8,480
Less: Expenses:
Cost of Goods Sold	$300,000	$160,000
Depreciation	$81,000	$34,000
Interest Expense	$34,000	$26,000
Other Expenses	$5,000	$8,000
Net Income	$228,480	$12,000

Retained Earnings Statements

	(X)	(Y)
Balance, July 1, 2019	$960,560	$48,000
Net Income	$228,480	$12,000
Dividends	$20,000	$2,000
Balance, June 30, 2020	$1,169,040	$58,000

Balance Sheets

	(X)	(Y)
Cash	$1,200,000	$365,000
Accounts Receivable	$270,000	$55,000
Investment in (Y)	$319,040
Inventory	$70,000	$70,000
Equipment (net)	$820,000	$65,000
Trademark		$85,000
Total Assets	$2,679,040	$640,000
Current Liabilities	$350,000	$332,000
Bonds Payable	$260,000	$70,000
Common Shares	$900,000	$180,000
Retained Earnings	$1,169,040	$58,000
Total Liabilities and Equity	$2,679,040	$640,000

An impairment test conducted in September 2018 on (X) 's goodwill resulted in an impairment loss of $10,000 being recorded. Both companies use a FIFO system, and (Y) 's entire inventory on the date of acquisition was sold during the following year. During 2020, (Y) Inc. borrowed $20,000 in cash from (X) Inc. interest free to finance its operations. (X) uses the Equity Method to account for its investment in (Y) Assume that the fair value enterprise (FVE) method applies.

Required:

Calculate the following:

1. The value of Common Shares appearing on (X) 's consolidated balance sheet on June 30, 2020 (3 marks)

2. The amount of Accounts Receivable appearing on (X) 's consolidated balance sheet as at June 30, 2020 (3 marks)

3. The amount of Current Liabilities appearing on (X) 's consolidated balance sheet as at June 30, 2020 (3 marks)

4. The net amount appearing on (X) 's consolidated balance sheet for Equipment as at June 30, 2020 (3 marks)

5. The amount of goodwill appearing on (X) 's consolidated balance sheet as at June 30, 2020 (5 marks)

6. What amount would appear as (X)'s investment in (Y) on its June 30, 2020 consolidated balance sheet? (3 marks)

7. The amount of non-controlling interest appearing on (X) 's consolidated balance sheet as at June 30, 2020 (5 marks)

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