advance financial accounting help please
On December 31, 2016, Prime Ltd. purchased 60% of the shares of Solar Ltd. for Tk. 14,28,000. On that date, the carrying amount of Solar's identifiable net assets was Tk. 20,40,000. The book values of all of Solar's assets were equal to their fair values on acquisition date except land, which had carrying amount of Tk. 10,00,000 while market price being Tk. 10,59,500. Solar also had unrecognized trademarks that were worth Tk. 69,000. On the acquisition date, Solar's retained eamings were Tk. 5,40,000 and the trademarks had amortization life 6 years with no residual value. An impairment loss of Tk. 85.000 occurred for the goodwill in 2020. Prior to 2020 there were no impairments. The separate financial statements provided by the accountants of Prime Ltd. and Solar Ltd are as follows Prime Ltd. and Solar Ltd. Statements of Income and Retained Earnings For the year ended December 31, 2020 Prime Solar Sales Tk. 61,40,000 Tk. 36,85,000 Investment income 1,20,000 6,000 62.60,000 36,91,000 Costs and expenses Cost of goods sold 39,29,500 25,79,500 Depreciation, amortization & impairments 2,65,500 1,75,000 Interest expense 1,06,000 76,000 Other expense 3,96,500 1,78,000 Income tax expense 6.25,000 2.73,000 53.22.500 32.81,500 Net income 9,37,500 4,09,500 Retained earnings, beginning of year 8,61,000 6.50,000 17,98,500 10,59,500 Dividends 3,12,500 1,60,000 Retained earnings, end of year Tk 14,86,000 TK 8.99,500 Prime Ltd. and Solar Ltd. Balance Sheets As at December 31, 2020 Prime Solar Assets Cash and receivables Land Investment in Solar Loan to Prime (non-current) Property, plant, and equipment (net) TK. 11,15,000 20,62,000 14,28,000 Tk 4,48,000 14,25,000 29,53,000 TK 75.58,000 1,50,000 28,78,000 Tk 49.01.000 Liabilities and shareholders' equity Current liabilities Long-term liabilities Common shares Retained eamings TK. 14,22,000 26,50,000 20,00,000 14,86,000 Tk 75,58.000 Tk 6,01,500 19,00,000 15,00,000 8,99,500 Tk 49.01.000 Additional information 1) On January 1, 2020, Solar had given a loan of Tk. 150,000 to Prime none of which has been paid back to date. Solar earned Tk. 6,000 in interest on the loan, which has been reported as investment income. Prime recorded an interest expense of the same amount in its book. 2) Prime and Solar regularly trades goods between themselves. During 2020 Prime sold goods of Tk. 270,000 to Solar and purchased goods of Tk. 230,000 from Solar. None of these goods remained in the ending inventory of Prime and Solar at year end since they were all sold to third party before December 31, 2020, with at least 25% mark up. 3) Ignore the effects of necessary adjustments on income tax. Required Prepare consolidated financial statements on behalf of the parent company for the year ended December 31, 2020. Keep the format of the statements as provided by the accountants of Prime and Solar as presented in the question. Show all your workings in details
