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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.