Consolidated financial statements including investments in associates    LO3, 4, 5, 7 Box Ltd acquired 90% of the ordinary shares of Jelly Ltd on 1 July 2015 at a cost of $150 750. At that date the equity of Jelly Ltd was as follows. Share capital (100 000 shares) $100 000 General reserve 8 000 Retained earnings 12 000 At 1 July 2015, all the identifiable assets and liabilities of Jelly Ltd were at fair value except for the following assets. Carrying amount Fair value Inventories $10 000 $15 000 Depreciable assets 25 000 35 000 The inventories was all sold by 30 June 2016. Depreciable assets have an expected further 5‐year life, with depreciation being calculated on a straight‐line basis. Valuation adjustments are made on consolidation. Box Ltd uses the partial goodwill method. On 1 July 2018, Box Ltd acquired 25% of the capital of Fish Ltd for $3500 entering into a joint venture with three other venturers. All the identifiable assets and liabilities of Fish Ltd were recorded at fair value except for the following. Carrying amount Fair value Inventories $1 000 $1 500 Depreciable assets 6 000 7 000 All these inventories were sold in the 12 months after 1 July 2018. The depreciable assets were considered to have a further 5‐year life. Information on Fish Ltd’s equity position is as follows. 1 July 2018 30 June 2019 Share capital $10 000 $10 000 General reserve — 2 000 Retained earnings 2 150 4 000 For the year ended 30 June 2020, Fish Ltd recorded a profit before tax of $2600 and an income tax expense of $600. Fish Ltd paid a dividend of $200 in January 2020. Box Ltd regards Fish Ltd as a joint venture investee. During the year ended 30 June 2020, Fish Ltd sold inventories to Jelly Ltd for $6000. The cost of these inventories to Fish Ltd was $4000. Jelly Ltd has resold only 20% of these items. However, Jelly Ltd made a profit before tax of $500 on the resale of these items. On 1 January 2019, Box Ltd sold Fish Ltd a motor vehicle for $4000, at a profit before tax of $800 to Box Ltd. Both companies treat motor vehicles as non‐current assets. Both companies charge depreciation at 20% p.a. on the diminishing balance. Assume a tax rate of 30%. Information about income and changes in equity for Box Ltd and its subsidiary, Jelly Ltd, for the year ended 30 June 2020 is as follows. Box Ltd Jelly Ltd Sales revenue $200 000 $60 000 Less: Cost of sales 110 000 30 000 Gross profit 90 000 30 000 Less: Depreciation 16 000 4 000 Other expenses 22 000 3 000 38 000 7 000 52 000 23 000 Plus: Other revenue 30 000 5 000 Box Ltd Jelly Ltd Profit before income tax 82 000 28 000 Less: Income tax expense 20 000 10 000 Profit 62 000 18 000 Plus: Retained earnings (1/7/19) 120 000 80 000 182 000 98 000 Less: Dividend paid 20 000 4 000 Retained earnings (30/6/20) $162 000 $94 000 Required 1. Prepare the consolidated statement of profit or loss and other comprehensive income of Box Ltd and its subsidiary Jelly Ltd as at 30 June 2020. 2. In the consolidated statement of financial position, what would be the balance of the investment shares in Fish Ltd?