N 1 (This is the same information as Question 1 Part B of Assignment 4) Parent Ltd acquired equity assets were consild equity in Subsidiary Ltd on 1 April 2007. At that date, the identifable isdered to be fairly valued and the equity of Subsidiary Ltd comprised: et Share capital Retained earnings Asset revaluation surplus $370 000 160 000 25 000 S 555 000 Parent Ltd has requested your help in the preparation of their consolidated financial for the financial year ended 31 March 2018 and has provided you with the following information: The following account balances have been extracted from the financial statements of Subsidiary Ltd on 31 March 2018 $370 000 36 000 Share capital Asset revaluation surplus Retained earnings Retained earnings-opening balance Profit after tax Dividends declared and paid 196 000 89 580 74 000 211 580 $ 617 580 In 2009 the total goodwill of Subsidiary Ltd was considered by the directors to be impaired by S 2 000 and then again in 2014 by $4 200. The directors of Parent Ltd believe that the total goodwill has been further impaired, during this financial year ended 31 March 2018, by $3 000. Subsidiary Ltd borrowed $70 000 from Parent Ltd on8 August 2016 at an interest rte of 3% per annum; the loan is repayable in 2020, The interest due, for the year ended 31 March 2018, was paid by Subsidiary Ltd on the 31 March 2018. During March 2017 Subsidiary Ltd made sales to Parent Ltd of $8 000; the sold inventory had cost Subsidiary Ltd $5 800. Parent Ltd had not sold this purchase of inventory as at 31 March 2017. During March 2018 Subsidiary Ltd made sales to Parent Ltd of $6 800; the sold inventory had cost Subsidiary Ltd $4 000. The inventory Parent Ltd had on hand at 31 March 2018 included this purchase from Subsidiary Ltd. During March 2017 Parent Ltd made sales to Subsidiary Ltd of $4 000 and recognised a profit of s1 860. This purchase remained in the inventory of Subsidiary Ltd as at 31 March 2017