Full goodwill method, intragroup transactions   LO4, 6 On 1 July 2014, Nate Ltd acquired 75% of the issued shares of Finn Ltd at a cost of $27 600. At this date, the equity of Finn Ltd consisted of: Ordinary shares — ($1 each fully paid) $30 000 Retained earnings 6 000 At 1 July 2014, Finn Ltd had not recorded any goodwill, and all the identifiable assets and liabilities of Finn Ltd were recorded at fair value. Nate Ltd uses the full goodwill method. The fair value of the non‐controlling interest in Finn Ltd at 1 July 2014 was $9000. The trial balances of the two companies as at 30 June 2019 are as follows. Trial balances as at 30 June 2019 Nate Ltd Finn Ltd Dr Cr Dr Cr Share capital $ 40 000 $ 30 000 Retained earnings (1/7/18) 19 000 14 500 Other components of equity — 5 000 Current tax liability 8 500 2 900 Plant $ 30 000 $ 60 000 Accumulated depreciation — plant 17 000 30 500 Shares in Finn Ltd 27 600 — 10% debentures in Finn Ltd 2 500 — Inventories 12 000 15 500 Cash 14 050 500 Nate Ltd Finn Ltd Dr Cr Dr Cr Financial assets — 11 000 Deferred tax asset 2 000 5 000 Sales revenue 50 000 80 000 Cost of sales 34 000 58 500 Selling expenses 4 000 6 000 Other expenses 1 500 1 500 Financial expenses 1 500 2 000 Income tax expense 5 000 5 500 Interest received from debentures 250 — Dividend revenue 1 800 — Dividend paid — 2 400 10% debentures 2 400 5 000 $136 550 $136 550 $167 900 $167 900 Additional information

(a) Intragroup sales of inventories for the year ended 30 June 2019 from Finn Ltd to Nate Ltd: $19 000.

(b) Unrealised profits on inventories held at 1 July 2018: inventories held by Nate Ltd purchased from Finn Ltd at a profit before tax of $800.

(c) Unrealised profits on inventories held at 30 June 2019: inventories held by Nate Ltd purchased from Finn Ltd at a profit before tax of $1200.

(d) The other components of equity account relates to financial assets held by Finn Ltd. The balance of this account at 1 July 2018 was $4000.

(e) The tax rate is 30%. Required Prepare the consolidated financial statements for Nate Ltd for the year ended 30 June 2019.