Prince Ltd bought 80% of Silver Ltd on 1 January 20x1 for $230,000 when Silver’s statement of financial position was as follows:

Fixed assets had a remaining useful life of five years as at 1 January 20x1. Goodwill impairment losses on the original goodwill of Silver attributable to parent and non-controlling interests are as follows:

(a) 20% of the original goodwill was deemed impaired and written off in 20x2.

(b) 10% of the original goodwill was written off in 20x3.
Fair value of non-controlling interests as at 1 January 20x1 was $55,000. The financial statements for the year ended 31 December 20x3 are as follows:

Required:
1. Prepare all necessary consolidation adjustments and elimination entries for the year ended 31 December 20x3.
Recognize tax effects at 20%.
2. Prepare the consolidation worksheet for the year ended 31 December 20x3.
3. Perform an analytical check on the balance of non-controlling interests as at 31 December 20x3.

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Share capital.. Retained earnings. Silver Ltd Statement of Financial Position As at 1 January 20x1 Shareholders' equity Fixed assets, cost.. Less accumulated depreciation.. Net book value... Other assets, net of liabilities. Net assets.. Book value Fair value $190,000 5,000 $195,000 $215,000 $100,000 30,000 $ 70,000 125,000 $195,000 $ 90,000 125,000 $215,000