-mid-year acquisitions

- Negative goodwill

Pumpkin (P) acquired $560,000 shares of Sweet banana (SB) on 1 April 2020. P paid $250,000 in cash; P also issued 3shares for any 5shares received from SB. The market value of P shares was &1.2. Given below are the financial statements of the two companies for the year ending 31 December 2020.

	PUMPKIN	SWEET BANANA
	$	$
NCA
PP&E	750,000	600,000
INVESTMENTS	560,000
	1,310,000	600,000
CA
INVENTORY	270,000	180,000
RECEIVABLES	480,000	360,000
CASH	330,000	285,000
	1,080,000	825,000
TOTAL ASSETS	2,390,000	1,425,000
SHARE CAPITAL $1	890,000	700,000
SHARE PREMIUM	580,000
RETAINED EARNINGS	340,000	260,000
NCL
12% LONG TERM LOAN	380,000	270,000
CURRENT LIABILITIES	200,000	195,000
TOTAL EQUITY & LIABILITIES	2,390,000	1,425,000

The following information is relevant:

1. Sweet banana earned a profit of $ 170,000 for the year ended 31 December 2021.
2. Pumpkin transferred an item of plant to SB for $ 240,000. Its carrying amount at that date was $ 180,000 and had a remaining useful life of 3years.
3. Inventory worth $150,000 of P includes goods purchased from SB at a cost plus 25%
4. P uses the Fare value method to value the NCI and the Fair value of the NCI at the time of acquisition was determined to be $80,000
5. Included in Ps receivable is $ 130,000 relating to goods sold to SB during the year. SB raised a cheque for $ 100,000 on 30 December 2020 but P had not received this cheque at the time of preparing the financial statements.

Required:

Prepare CSFP for the pumpkin group as at 31 December 2020