calculate the group net income for the year ended dec31 2012

The following information relates to questions 10-22 Pirate acquired 81,000 shares of the 90,000 outstanding shares of Saint on 1 January 2010 for $ 9,000 when Saint had the following balances Saint $4,000 Share capital Share premium Retained Earnings $1,000 $2,000 The following information is also relevant: A- In arriving at the consideration for the shares in Saint, the book value of Saint's property, plant and equipment was agreed at $500 above the fair value -5 year remaining life. B- During the current year 2012, Pirate sold Merchandise Inventory to Saint, the Inventory had a cost of $400 and the selling price included a 25% mark-up on cost. 80% of these goods were sold by Saint at 31 December 2012. C- On 1 January 2012, Saint sold a plant asset to Pirate for $ 2,500. The asset had an original cost of $ 10,600, accumulated depreciation of $ 8,700 and a 10 year remaining useful life. The asset is depreciated by Pirate using the straight-line method over its remaining useful life- including full year depreciation at year of purchase. D- Goodwill was impaired by 10% during the year 2012 E- The dividend revenue in Pirate was received from a non-related company F- The Full goodwill method is used. The income statements of the two companies for the year ended 31 December 2012 were as follows: Pirate $ Saint $ Sales Revenue 24,900 19,000 Cost of cods sold (15,300) (11,000) 9,600 8,000 |(4,800) (2,200) Gross profit Operating expenses Dividend revenue Gain on sale of plant asset 750 600 Pretax profit 6,400 Taxation 5,550 (900) 4,650 (600) Net income 5,800