Consolidated balance sheet and prior-year mark-up Tucker Ltd is the parent and Clarke Ltd the subsidiary in the Penal Group of companies. Their balance sheets as at 31 December 20X7 on the next page. Tucker Ltd acquired 80% of Clarke Ltd for $90000. The consideration consisted of cash $40000 and the balance in Tucker shares. These were issued as fully paid. On the control date, 1 July 20X4, owners' equity of Clarke Ltd, reflecting assets at their fair value, consisted of: 100 000 Share capital Asset revaluation reserve Accumulated losses 10000 (10000) During the year, Clarke purchased inventory from Tucker for $2000. This inventory cost Tucker $1200. At they year- end, all of these goods were unpaid, and half of them were still in Clarke's inventory. On 1 January 20X6, Clarke sold surplus equipment to Tucker. The equipment cost $80000, was depreciated at the rate of $10000 p.a., and its carrying amount when sold was $30000. The sale price was $45 000. Tucker has depreciated the asset at $15000 p.a. $7000 impairment of consolidation goodwill was recognised for the year. There is no impairment of the investment in Clarke. Required: Prepare a worksheet for the consolidated balance sheet of the Penal Group as at 31 December 20X7. Members of the PENAL GROUP Balance sheets as at 31 December 20X7 Tucker Ltd $ Clarke Ltd $ 5000 25 000 20 000 8000 18000 56 000 25000 45000 46000 102 000 60000 60 000 Current assets Bank Accounts receivable Dividend receivable Inventory Non-current assets Land Equipment net of depreciation Investment in subsidiary Other investments Goodwill Total assets Current liabilities Accounts payable Bank overdraft Tax payable Dividend payable Total liabilities 90 000 16000 10000 120000 264000 320 000 165 000 17000 15000 7000 3000 10 000 18000 25 000 60 000 35 000 Net assets 260 000 130 000 Net assets 260 000 130 000 100 000 Paid-up capital Asset revaluation reserve Other reserves Retained profits Owners' equity 125000 65 000 50 000 20000 20000 10000 260 000 130 000 Consolidation worksheet at 31 December 20X7: Balance sheet Tucker Clarke Sum Group Eliminations Dr Cr Allocation to shareholders NCI Parent Paid-up capital Asset revaluation reserve Other reserves Retained profits 125 000 100 000 225 000 65 000 20 000 85 000 50 000 50 000 20 000 10 000 30 000 Owners' equity 260 000 130 000 390 000 17 000 Accounts payable Bank overdraft Tax payable Dividend payable 15 000 32 000 7 000 7 000 3000 21 000 10 000 35 000 18 000 25 000 Total equities and asset contras 320 000 165 000 485 000 Bank Accounts receivable Dividend receivable Inventory Land Equipment net of depreciation Investment in subsidiary 5 000 5 000 25 000 20 000 45 000 8 000 8 000 18 000 25 000 43 000 46 000 60 000 106 000 102 000 60 000 162 000 90 000 90 000 Other investments Goodwill 16 000 10 000 16 000 10 000 Total assets 320 000 165 000 485 000