Consolidated Statement of Financial Statement

Review Question:

ABC Company acquired $80\%$ of the outstanding shares of XYZ Company on January $1,2023,$ for $$500,000$ in cash. At that time, the fair value of the non$-$controlling interest was assessed at $$125,000.$ On December $31,2023,$ the fair value of the non$-$controlling interest has increased to $$140,000.$ The separate statements of financial position for ABC Company and XYZ Company on December $31,2023,$ are as follows:

ABC Company XYZ Company:

Assets:

Cash: $$100,000$ $$50,000$

Accounts Receivable: $$150,000$ $$120,000$

Inventory: $$200,000$ $$180,000$

Property, Plant, and Equipment: $$600,000$ $$700,000$

Investments in XYZ Company: $$500,000$

Total Assets: $$1,550,000$ $$1,050,000$

Liabilities:

Accounts Payable: $$100,000$ $$80,000$

Long$-$Term Debt: $$500,000$ $$400,000$

Total Liabilities: $$600,000$ $$480,000$

Equity:

Share Capital: $$300,000$ $$200,000$

Retained Earnings: $$650,000$ $$370,000$

Total Equity: $$950,000$ $$570,000$

Total Equity and Liabilities $$1,550,000$ $$1,050,000$

Required: Prepare the consolidated statement of financial position for ABC Company and its subsidiary, XYZ Company, as of December $31,2023.$