Assignment 1 The following are the statements of financial position of Pirate plc and Saint plc for the year ended 31 December 2010. Statement of Financial position as at 31 December 2010 The following information is also relevant 1- Pirate acquired 80% of the share capital of Saint in I January 2009 when Saint plc had the following balances Share capial 4,800 Retained Eamnings 2,400 2- In arriving at the consideration for the shares in Saint plc, the fair value of Saint's PPE was agreed at $500 below the book value. 10 year remaining life for this PPE using straight line method. 3- During the current year 2010 Piarte plc sold merchandise inventory to Saint at an invoice price of $400 on which Pirate made a gross profit of 25%. One quarter (1/4) of these goods remained in the inventory of Saint plc at 31 December 2010. 4-Goodwill was impaired by $50 during the year 2010 . There was no impairment in 2009. 5- At 1 January 2010, Pirate sold a depreciable plant asset to Saint for $275. The sold plant asset had a cost of $1,000 and an accumulated depreciation of $750. This asset is deprecated by Saint using straight line method over its remaining useful life of 5 years including full depreciation in year of purchase. 6- Full goodwill method is used Required: Prepare the consolidated Balance Sheet as at 31 December 2010 and make sure to show all calculations and journal entries