Please explain how you get the answer. The following are the statements of retained earnings for the two companies for Years 5 and 6:PicSicRetained earnings, beginning of yearProfitDividendsYear S$ 518,000141,500(100,000)$ 559,500Year 6$ 559, 500149,500(120, 00e)$ 589,000Yeur 5Yeur 6$ 309, 00$ 358,000201,000(90, 000)$ 469,000139, 000(98, 000)$ 358,000Retained earnings, end of yearAdditional Information• Pic uses the cost method to account for its investment in Sic.• Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 31, YearZ. Neither company has any customer contracts recorded on their separate entity records.• There were no unrealized profits from intercompany transactions since the date of acquisition.Required:(a) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit $ sign in your response.)Consolidated profit attributable to Pic's shareholders(b) Calculate the following account balances for the consolidated statement of financial position at December 31, Year 6: (Omit $ signin your response.)(4) Customer contracts(41) Mon-controlling interest(ii4) Retained earnings Problem 08-10 (LO2)On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $825,000. On January 1, Year 6, Pic Companyacquired an additional 2,000 ordinary shares of Sic Company for $207000. On January 1, Year 5, the shareholders' equity of Sic wasas follows:Ordinary shares (10,000 no par value shares issued)Retained earnings$200, 800309, 000$s09, 000The following are the statements of retained earnings for the two companies for Years 5 and 6:PicSicYear 5Year 6Year 5Year 6Retained earnings, beginning of yearProfit$ 518,000141,500(100,000)$ 559,500$ 559,500149, 500(120, 000)$ 589, 000$ 309,000139,800(90,000)$ 358,000$ 358, 000201,000(90, 000)$ 469,000DividendsRetained earnings, end of yearAdditional Information• Pic uses the cost method to account for its Investment in Sic.Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 31, Year7. Neither company has any customer contracts recorded on their separate-entity records.• There were no unrealized profits from intercompany transactions since the date of acquisition.Required:(n) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit $ sign in your response.)

On 01.01.year 5, Pic company acquired Sic company = $825000 Purchase consideration for = 7500…

Problem 08-10 (LO2) On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $825,000. On January 1, Year 6, Pic Company acquired an additional 2,000 ordinary shares of Sic Company for $207000. On January 1, Year 5, the shareholders' equity of Sic was as follows: Ordinary shares (10,000 no par value shares issued) Ketained earnings $200, 000 309, 000 $509, 000 The following are the statements of retained earmings for the two companies for Years 5 and 6: Pie Year 5 $ S18,000 141,500 (100,000) $ 559,500 Sie Year S $ 309,000 139,000 (90,000) Retained earnings, beginning of year Year 6 Year 6 $ 559, 500 149, 500 (120, 000) $ 589,000 $ 358, 000 Profit 201,000 Dividends Retained earnings, end of year (00, 000) $ 358,000 $ 469, 000 Additional Information • Pic uses the cost method to account for its Investment in Sic. • Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 31, Year 7. Neither company has any customer contracts recorded on their separate-entity records. • There were no unrealized profits from intercompany transactions since the date of acquisition. Required: (n) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit S sign in your response.)

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q