Consolidated financial statements, multiple subsidiaries, acquisitions on the same date    LO3 On 1 July 2020, United States Ltd acquired 60% of the issued shares of Peru Ltd for $108 000. On the same day, Peru Ltd acquired 80% of the issued shares (cum div.) of Canada Ltd for $71 600. At the acquisition date, Peru Ltd’s and Canada Ltd’s financial statements showed the following balances. Peru Ltd Canada Ltd Share capital $100 000 $60 000 General reserve 30 000 20 000 Retained earnings 15 000 8 000 Dividend payable — 5 000 The dividend of Canada Ltd was paid later in the year ended 30 June 2021. On 1 July 2020, all identifiable assets and liabilities of Peru Ltd and Canada Ltd were recorded at fair values except for the following. Peru Ltd Canada Ltd Carrying amount Fair value Carrying amount Fair value Plant and machinery (cost $80 000) $60 000 $80 000 — — Inventories 40 000 50 000 $30 000 $40 000 Vehicles (cost $80 000) — — 50 000 55 000 The vehicles have an expected useful life of 4 years and the plant is expected to last a further 10 years. Benefits are expected to be received evenly over these periods. All inventories on hand at 1 July 2020 were sold by 30 June 2021. The financial statements of the three companies at 30 June 2021 are as follows. United States Ltd Peru Ltd Canada Ltd Sales revenue $520 000 $365 000 $115 000 Other revenue 160 000 105 000 58 000 680 000 470 000 173 000 Cost of sales 410 000 190 000 86 000 Other expenses 146 000 180 000 42 000 556 000 370 000 128 000 Profit before income tax 124 000 100 000 45 000 Income tax expense 51 000 40 000 20 000 Profit 73 000 60 000 25 000 Retained earnings (1/7/20) 24 000 15 000 8 000 97 000 75 000 33 000 Interim dividend paid 10 000 15 000 3 000 Final dividend declared 16 000 8 000 4 000 Transfer to general reserve 25 000 6 000 4 000 51 000 29 000 11 000 Retained earnings (30/6/21) 46 000 46 000 22 000 Share capital 250 000 100 000 60 000 General reserve 145 000 36 000 24 000 Bank overdraft 21 000 6 000 20 000 Provisions 41 000 30 000 20 000 Current tax liability 55 000 42 000 26 000 Deferred tax liability 25 000 12 000 8 000 Dividend payable 16 000 8 000 4 000 $599 000 $280 000 $184 000 United States Ltd Peru Ltd Canada Ltd Bank $ 49 000 $ 25 000 $ 32 000 Receivables 61 200 17 000 16 000 Inventories 103 000 41 800 68 000 Dividend receivable 4 800 3 200 — Shares in Peru Ltd 108 000 — — Shares in Canada Ltd — 67 600 — Deferred tax asset 21 000 15 400 8 000 Plant 200 000 180 000 — Accumulated depreciation — plant (48 000) (70 000) — Vehicles 130 000 — 100 000 Accumulated depreciation — vehicles (30 000) — (40 000) $599 000 $280 000 $184 000 Additional information

(a) Included in the ending inventories of Peru Ltd at 30 June 2021 was inventories purchased from Canada Ltd for $10 000. This had originally cost Canada Ltd $8000.

(b) United States Ltd had sold inventories to Canada Ltd during the period ended 30 June 2021 for $25 000. This had cost United States Ltd $20 000. Half of this has been sold to external parties by Canada Ltd during the period for $15 000.

(c) The tax rate is 30%. Required Prepare the consolidated financial statements for United States Ltd and its subsidiaries, Peru Ltd and Canada Ltd, for the period ending 30 June 2021.