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LEE AND MATTLee acquired 80% of the share capital of Matt on 1st January 20X8. When the retained earnings of Lee were $125,000. Lee paid initial cash consideration of $1 million.

Below is the statement of financial position of Lee and Matt as at 31st December 20X9.

 

Lee

Matt

 

$000

$000     

Investment in Matt at cost

1000

 

PPE

5,500

1,500

 

 

 

Current Assets

 

 

Inventory

550

100

Receivables

400

200

Cash

200

50

 

_____

_____

Total Asset

7,650

1,850

 

______

_____

 

 

 

Share Capital

2,000

500

Retained Earnings

1,400

300

 

 

 

Non Current Liability

3,000

400

Current Liability

1,250

650

 

_____

____

Total Equity and Liability

7,650

1,850

 

_____

_____


Following information relates to the Group.

  1. At acquisition fair value of plant exceeded its book value by $200,000. The fair value of 20% NCI were $380,000.
  2. On 31st December 20X9 when the when the above balance sheet was prepared there was a intra group balance of $20,000 on Lee’s account in the receivable section. However Matt had a current liability of $15,000 only.
  3. Matt sold $20,000 value of goods at a margin of 40% and none of the goods were sold.
  4. Plants are depreciated at 10% straight line method and Lee had a future consideration to be paid for the acquisition in 5 years time cash of $500,000. It also paid to the owners of Matt $30,000 worth shares of Lee to the consideration.
  5. The countries interest rate is assumed to be 12% which is considered to be the cost of capital.

Prepare group consolidated statement of financial position as at 31st December 20X9.
(Provide the final answer)