On 30 September 20X0 Gold plc acquired 75% of the equity shares, 30% of the preferred shares and 20% of the bonds in Silver plc and gained control. The balance of retained ear nings on 30 September 20X0 was £16,000. The fair value of the land owned by Silver was £3,000 above book value. No adjustment has so far been made for this revaluation.

The balance sheets of Gold and Silver at 31 December 20X1 were as follows:

Notes:
1. 20% of the goodwill is to be written off as an impairment loss.
2. During the year Gold sold some of its inventor y to Silver for £3,000, which represented cost plus a mark-up of 25%. Half of these goods are still in the inventor y of Silver at 31/12/20X1.
3. There is no depreciation of land.
4. There has been no movement on share capital since the acquisition.
Required:
Prepare a consolidated balance sheet as at 31 December 20X1.

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Gold Silver ASSETS Property, plant and equipment (including land) 82,300 108,550 Investment in Silver 46,000 Current assets: Inventory 23,200 10,000 Silver current account 20,000 Bond interest receivable 175 Other current assets 5,000 7,500 Total assets 176,675 126,050 EQUITY AND LIABILITIES Equity share capital 60,000 27,600 Preferred shares 10,000 20,000 Retained earnings 75,000 21,200 145,000 68,800 Non-current liabilities - bonds 12,500 17,500 Current liabilities Gold current account 20,000 Bond interest payable 625 875 Other current liabilities 18,550 18,875 Total equity and liabilities 176,675 126,050