Costa Ltd is a company with a 30 June year end. The following information relates to Costa Ltd and its subsidiary Jumbo for the year ended 30 June 20.22. Property at cost Costa Ltd Jumbo Ltd Dr Cr Dr Cr 600 000 160 000 300 000 180 000 Equipment at cost Inventories Investment in Jumbo Ltd @fair value - 30 000 ordinary shares 100 000 204 000 80 000 (Cost is equal to fair value) Bank - Obese Bank 1200 12 000 Trade and other receivables 124 400 406 800 Income tax expense 190 000 170 000 Provisional tax payments 100 000 90 000 Loan to parent (interest free) 140 000 Dividends paid-ordinary 40 000 30 000 shares Dividends paid-preference 12 000 7 500 shares Issued share capital - Ordinary 1 671 600 200 000 1 276 300 100 000 shares of R2 each Issued -15% Cumulative 80 000 50 000 preference shares, R1 each Retained earnings - beginning 190 000 138 000 of year Accumulated depreciation - 128 000 94 000 Equipment Bank overdraft-GG Bank 48 000 Trade and other payables 175 600 238 300 Taxation paid 190 000 170 000 Loan from subsidiary Profit before tax 120 000 540 000 486 000 1 671 600 1 276 300 Additional information: 1. Costa Ltd acquired its interest in Jumbo Ltd at 1 July 20.18. at that date, Jumbo Ltd's retained earnings amounted to R55 000. Costa Ltd paid R204 000, R75 000 of which was paid for goodwill. The balance was attributable to the revaluation of Jumbo Ltd's property. The carrying amount of the assets and liabilities were equal to the fair value thereof. At the date of acquisition there was no arrear preference dividend. Each share carries one vote. 2. Costa Ltd has bought all its inventories from Jumbo Ltd since 1 July 20.21. jumbo Ltd made a profit of 25% on the cost price of inventories sold to Costa Ltd. 3. Jumbo Ltd paid no preference dividends for the period 1 July 20.18 to 30 June 20.20. on 30 June 20.21 Jumbo Ltd paid a preference dividend of R22 500. 4. On 29 June 20.22 Jumbo Ltd sent inventories to the value of R20 000 to Costa Ltd, Costa Ltd only received the inventories on 3 July 20.22. 5. On 2 January 20.21, Costa Ltd sold a machine to Jumbo Ltd at a profit of R40 000. It is group policy to provide for depreciation at 25% per annum according to the reducing balance method. Ignore all forms of taxes. Prepare the following consolidated financial statements of Costa Ltd and its subsidiary for the year ended 30 June 20.22. Notes to the financial statements are not required. 1.1 Consolidated statement of financial position as at 30 June 20.22 1.2 Consolidated statement of comprehensive income for the year ended 30 June 20.22 35 15 TOTAL MARKS 50 Answers are to comply with International Financial Reporting Standards (IFRS's). Show all calculations clearly.