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Darwin acquired 80% of Henry's shares for $300,000 on 1 January 2018. At that date Henry had retained earnings of $190,000. On December 31, 2018 Darwin dispatched goods which cost $80,000 to Henry, at an invoiced cost of $100,000. Henry received the goods on January 2, 2019. and record the transaction. The two companies' draft financial statements as at 31 December 2018 are shown below.

Darwin acquired 80% of Henry's shares for $300,000 on 1 January 2018. At that date Henry had retained earnings of $190,000. On December 31, 2018 Darwin dispatched goods on January 2 2019 and recorded the transaction. The two companies draft financial statements as at 31 December 2018 are shown below. Statement of Profit or Loss for year ended Darwin 5000 Revenue Cost of sales Gross profit Acumnistrative expense Distribution costs Profit before tax Income tax expense Profit tor the year >,000.00 2.900.00) 2,100.00 (1.000.00) 400.00 400.00 (130.00) Henry 5000 1,000.00 (600.00 400 00 (200 00) 120.00 8000 (2500) 270.00 55.00 Statement of Financial Position as at 31 December 2018 Darwin $ 000 Henry $ 000 Assets Non-current assets Property plant and Equipment Investment in Henry 200 1940 300 2240 200 Current assets Inventories Trade receivables Bank and cash 500 650 170 1320 120 40 35 195 Total assets 3560 395 Equity and liabilities | Equity Share capital Retained earnings 100 2000 520 2520 240 340 Current liabilities Trade payables Tax 910 130 1040 3560 30 25 55 395 Total equity and liabilities Required a) b) Prepare the consolidated statement of financial position as at year ended 31 December 2018 (10 marks) Darwin acquired 80% of Henry's shares for $300,000 on 1 January 2018. At that date Henry had retained earnings of $190,000. On December 31, 2018 Darwin dispatched goods on January 2 2019 and recorded the transaction. The two companies draft financial statements as at 31 December 2018 are shown below. Statement of Profit or Loss for year ended Darwin 5000 Revenue Cost of sales Gross profit Acumnistrative expense Distribution costs Profit before tax Income tax expense Profit tor the year >,000.00 2.900.00) 2,100.00 (1.000.00) 400.00 400.00 (130.00) Henry 5000 1,000.00 (600.00 400 00 (200 00) 120.00 8000 (2500) 270.00 55.00 Statement of Financial Position as at 31 December 2018 Darwin $ 000 Henry $ 000 Assets Non-current assets Property plant and Equipment Investment in Henry 200 1940 300 2240 200 Current assets Inventories Trade receivables Bank and cash 500 650 170 1320 120 40 35 195 Total assets 3560 395 Equity and liabilities | Equity Share capital Retained earnings 100 2000 520 2520 240 340 Current liabilities Trade payables Tax 910 130 1040 3560 30 25 55 395 Total equity and liabilities Required a) b) Prepare the consolidated statement of financial position as at year ended 31 December 2018 (10 marks)