River plc acquired 90% of the common shares and 10% of the 5% bonds in Pool Ltd on 31 March 20X1. All income and expenses are deemed to accrue evenly through the year. On 31 January 20X1 River sold Pool goods for £6,000 plus a mark up of one-third. 75% of these goods were still in stock at the end of the year. There was a goodwill impairment loss of £4,000. Set out below are the individual income statements of River and Pool:

Required:
Prepare a consolidated income statement for the year ended 31 December 20X1.

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Income statements for the year ended 31 December 20XI River Pool Net turnover 100,000 60,000 Cost of sales 30,000 30,000 Gross profit 70,000 30,000 Expenses 20,541 15,000 Interest payable on 5% bonds 5,000 Interest receivable on Pool Ltd bonds 500 49,959 10,000 Dividends received 2,160 NIL Profit before tax 52,119 10,000 Income tax expense 7,002 3,000 Profit for the period 45,117 7,000