Please do not give solution in image format ? And Fast Answering Please ? And Explain Proper Step by Step. Ahmed Corporation purchased 75 percent of Gander Company's common shares and 40 percent of its preferred shares onJanuary 1, Year 6, for $540,000 and $160,000, respectively. At the time of purchase, the fair value of Gander's common andpreferred shares was equal to their carrying value. Gander's balance sheet contained the following balances:Preferred Shares ($10 par value)Common SharesRetained EarningsTotal Shareholders' Equity$400,000300,000420,000$ 1,120,000For the year ended December 31, Year 6, Gander reported net income of $140,000 and paid dividends of $52,000 (whichincludes the preferred dividend). The preferred shares are cumulative and pay an annual dividend of 4 percent. There were nodividends in arrears at the date of acquisition. Ahmed uses the cost method to account for its interest in the preferred shares ofGander and the equity method to account for its interest in the common shares of Gander. Required:(a) Prepare the journal entries recorded by Ahmed for its investments in Gander during Year 6. (11transaction/event, select "No journal entry required" in the first account field.)AView transaction listBA Record the purchase of Gander shares.Show Transcribed TextCDB Record the dividends on preferred shares from Gander.с Record the equity-method income.NoD Record the dividends from Gander.Required:(a) Prepare the journal entries recorded by Ahmed for its investments in Gander during Year 6. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)Transaction1234ÇCashInvestment in Gander preferred sharesCashInvestment in Gander common sharesCashDividend incomeCashShow Transcribed TextDividend incomeGeneral JournalAnswer is not complete.ĆNon-controlling interest's share of net incomeNon-controlling interest on the balance sheet3EXĆ✔XxXXx>$35000$ 280000Debit160,000✔540,000 X6,400X27,000✔Credit160,000540,0006,400(b) Calculate non-controlling interest's share of net income and non-controlling interest on the balance sheet for the Year 6consolidated financial statements. (Omit $ sign in your response.)27,000

Consolidation is the process of combining the financial statements of related companies, to show the…

Ahmed Corporation purchased 75 percent of Gander Company's common shares and 40 percent of its preferred shares on January 1, Year 6, for $540,000 and $160,000, respectively. At the time of purchase, the fair value of Gander's common and preferred shares was equal to their carrying value. Gander's balance sheet contained the following balances: Preferred Shares ($10 par value) Common Shares Retained Earnings Total Shareholders' Equity $ 400,000 300,000 420,000 $ 1,120,000 For the year ended December 31, Year 6, Gander reported net income of $140,000 and paid dividends of $52,000 (which includes the preferred dividend). The preferred shares are cumulative and pay an annual dividend of 4 percent. There were no dividends in arrears at the date of acquisition. Ahmed uses the cost method to account for its interest in the preferred shares of Gander and the equity method to account for its interest in the common shares of Gander.