In June 2014, Osprey Ltd made an offer to the shareholders of Kite Ltd to acquire a controlling interest in the company. Osprey Ltd was prepared to pay $1.50 cash per share, provided that 70% of the shares could be acquired (enough shares to gain control). The directors of Kite Ltd recommended that the offer be accepted. By 1 July 2014, when the offer expired, 75% of the shares had changed hands and were now in the possession of Osprey Ltd. The statement of financial position of Kite Ltd on that date is shown below. KITE LTD Statement of financial position as at 1 July 2014 $368 000 Current assets Non-current assets 244 000 $612 000 $400 000 50 000 40 000 Share capital 400 000 shares General reserve Asset revaluation surplus Other components of equity Retained earnings Current liabilities 30 000 40 000 52 000 $612 000 At 1 July 2014, all the identifiable assets and liabilities of Kite Ltd were recorded at amounts equal to fair value. Osprey Ltd uses partial goodwill method. . . Additional information Osprey Ltd had made an advance of $80 000 to Kite Ltd. This advance was repayable in June 2016. The directors of Osprey Ltd and Kite Ltd had declared final dividends of $50 000 and $10 000 respectively, from current period's profits. Kite Ltd holds at the end of the reporting period inventory purchased from Osprey Ltd during the year for $55 000. Osprey Ltd invoices goods to its subsidiary at cost plus 10%. On 1 July 2014, Kite Ltd sold to Osprey Ltd some display equipment for $60 000. At that date, the carrying amount of the equipment was $54 000 and the equipment was estimated to have a useful life of 10 years if used constantly over that period. Assume a tax rate of 30%. . The draft financial statements of the two companies on 30 June 2015 revealed the following details: Osprey Ltd Kite Ltd Sales revenue $ 878 900 $ 388 900 Cost of sales 374 400 112 400 Gross profit 504 500 276 500 Other income 282 100 102 500 786 600 379 000 Other expenses 216 200 115 800 Profit from trading 570 400 263 200 Gain on sale of non-current assets 20 000 10 000 Profit before tax 590 400 273 200 Income tax expense 112 400 50 000 Profit 478 000 223 200 Retained earnings (1/7/14) 112 000 40 000 590 000 263 200 Dividend paid 40 000 30 000 Dividend declared 50 000 10 000 90 000 40 000 Retained earnings (30/6/15) 500 000 223 200 Share capital 1 200 000 400 000 General reserve 24 000 50 000 Asset revaluation surplus 70 000 40 000 Other components of equity 30 000 30 000 Current liabilities 177 000 154 400 $2 001 000 $ 897 600 Financial assets $ 280 000 $ 204 000 Receivables 320 000 175 000 Inventory 287 500 210 600 Investments Shares in Kite Ltd 450 000 Other investments 47 000 Equipment 650 000 360 000 Accumulated depreciation (250 000) (160 000) Land 216 500 108 000 $2 001 000 $ 897 600 Required Prepare the consolidated financial statements (Statement of profit or loss and other comprehensive income and Statement of financial position) for Osprey Ltd and its subsidiary as at 30 June 2015