Exercise 11_3: 70% - GW The single-company financial statements of Parent Corp. and Son Ltd. at December 31, 2020 appear as follows. Son Ltd. $ 5,000 18,000 34,000 Condensed Statement of Financial Position on December 31, 2020 Parent Corp. $ Assets Current assets Cash and cash equivalens 34,000 Trade and other receivables 38,000 Inventories 63,000 Non-current assets Deferred tax assets 4,000 Investment in Baby (42,000 1$ shares at cost) 50,000 Property, plan and equipment 120,000 309,000 Liabilities & Equity Liabilities Current liabilities Trade paybales 35,000 Loans repayable within 12 months 10,000 Non-current liabilities Deferred tax liabitities 50,000 107,000 20,000 2,000 Equity Shares capital Retained earnings 200,000 64,000 309,000 60,000 25,000 107,000 Condensed Statement of Profit or Loss on December 31, 2020 Revenue Cost of sales Gross profit Operating expenses Profit before taxation Income taxes Profit for the year 100,000 60,000 40,000 14,000 26,000 5,000 21,000 60,000 25,000 35,000 8,000 27,000 2,000 25,000 The following additional information affects the preparation of the consolidated financial statements. 1. Parent Corp. acquired 70 percent of the outstanding shares of Son Ltd. for $50,000 cash on January 1, 2020. At the time of acquisition, the book value of the shareholders' equity of Company S was $60,000 with no retained earnings. 2. At December 31, 2020, $10,000 of Son's accounts receivable represent amounts payable by Parent. 3. During 2020, Son sold merchandise to Parent for $25,000 and recorded $10,000 as the related cost of goods sold. None of that merchandise remains in Company P's inventory as of December 31, 2020. Require: Prepare the consolidated financial statements at December 31, 2020. Accounting entries are not required