On December 31, 2009, Lara acquired all the issued shares of Jade. On this date, the share capital of Jade consisted of 200,000 shares paid at $0.50 per share. Retained earnings of Jade at this date were $45,000. At December 31, 2009, all the identifi able assets and liabilities of Jade were recorded at fair value except for some plant and machinery. This plant and machinery, which cost $100,000, had a carrying amount of $85,000 and a fair value of $90,000. The estimated remaining useful life was 10 years. Immediately after acquisition, a dividend of $10,000 was declared and paid out of retained earnings. The trial balances of Lara and Jade at December 31, 2013, were as shown below:

Additional information:
1. During the current period, Lara sold inventory to Jade for $20,000. This had originally cost Lara $18,200. Jade has, by December 31, 2013, sold half this inventory for $12,310.
2. One of the plant items held by Lara at December 31, 2013, had been purchased from Jade on July 1, 2010, for $25,000. It had a carrying amount to Jade of $17,500. Lara depreciates straight line over 10 years.
3. At January 1, 2011, Jade sold land to Lara for $50,000. This item cost Jade $55,000.

4. The tax rate is 30%.

Required
Prepare the consolidated financial statements as at December 31, 2013.

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Trial Balances as at December 31, 2013 Lara Jade Credits $500,000 90,000 22,000 6,240 22,000 250,000 $100,000 86,000 38,000 5,200 14,000 120,000 Share capital Retained earnings (1/1/13) Current tax liabilities Deferred tax liabilities Payables Sales revenue Other income 20,000 5,000 $910,240 $368,200 Debits $ 10,000 8,000 76,000 52,600 7,310 40,000 72,000 5,990 6,300 $ 20,000 10,000 125,000 124,200 Income tax expense Dividend declared and paid Property, Plant, and Equipment-net Motor vehicles-net Receivables 25,000 60,000 106,440 46,900 12,700 160,000 188,000 28,000 4,000 Financial assets Inventory Cash Deferred tax assets Investment in Jade Cost of sales 80,000 5,000 5,000 Other expenses Loss on sale of property, plant, and equipment sold $910,240 $368,200