On 1 January 2022, Carpet Ltd acquired all the shares of Snake Ltd for $257 000 on an ex-div. basis. On this date, the equity, and liabilities of Snake Ltd included the following balances:

Share Capital	$115,500
General Reserve	$3,000
Retained Earnings	$55,125
Dividend Payable	$5,000
Goodwill	$10,000

At acquisition date, all the identifiable assets and liabilities of Snake Ltd were recorded at amounts equal to fair value except for:

	Carrying Amount	Fair Value
Plant and equipment (cost $50,000)	$40,000	$44,000
Patent	20,000	26,000
Inventories	30,000	39,000
Land	50,000	75,000

The plant and equipment had a useful life of 5 years at acquisition date and was expected to be used evenly over that time. Snake Ltd had not recorded an internally generated brand that Carpet Ltd considered to have a fair value of $22,000. The brand was considered to have an indefinite life. The patent had a further 6-year useful life at acquisition date. Any adjustments for differences between carrying amounts at acquisition date and fair values are made on consolidation. Goodwill on acquisition was impaired by $10,000 on 30 June 2022. During the year ended 30 June 2022, all inventories on hand at acquisition date were sold, and the land was sold on 1 June 2022 for $80,000. Any valuation reserves created are transferred on consolidation to retained earnings when assets are sold or fully consumed.

Additional information-Intragroup transactions:

(a) On 1 May 2022, Snake Ltd purchased inventory worth $13 000 from Carpet Ltd. The inventory had previously cost Carpet Ltd $8 000. Half of this inventory was sold externally by 30 June 2022.

(b) On 30 April 2022, Snake Ltd transferred inventory costing $50,000 to Carpet Ltd for $80,000. Carpet Ltd treated this item as plant. The item was still on hand at 30 June 2022. Carpet Ltd applied a 10% depreciation rate to this plant.

(c) On 1 February 2022, Snake Ltd acquired inventory for $6,000 from Carpet Ltd at a mark-up of 20% on costs. One-quarter of this inventory has been sold to external parties for $3,000 by 30 June 2022.

(d) On 1 January 2022, Carpet Ltd sold a motor vehicle to Snake Ltd for $48,000. This vehicle had originally cost Carpet Ltd $90 000 and had a carrying amount at the time of sale of $57,000. Both entities charge depreciation at a rate of 20% p.a. (e) Carpet Ltd issued 9% Debentures with par value of $100 each on 1 January 2022. Some of these Debentures, worth $20,000, were purchased by Snake Ltd. Interest on the Debentures is calculated at 9% p.a. and the last interest payment was made on 31 May 2022.

The corporate tax rate is 30%.

Required:

a. A consolidation worksheet for Carpet Ltd as at 30 June 2022, using the template below.

b. A consolidated statement of financial position using account format, for Carpet Ltd as at 30 June 2022.

30-June-2022	Carpet Ltd	Snake Ltd	Adjustments	Consolidated
			Debit($)	REF	Credit($)	REF	Group($)
Sales Revenue	216,100.00	139,200.00
Cost of sales
	105,620.00	81,113.00
Gross Profit	110,480.00	58,087.00
Trading Expenses	58,640.00	15,750.00
Impairment loss expenses	14,310.00	7,087.00
Interest Expenses	9,000	4,500
Amortisation Expense	5,000	2,000
Depreciation Expense	3,240	6,825
Total Expenses	90,190	36,162
Profit from trading	20,290	21,925
Other revenue	-	1,800
Gain/loss on sale of Land	61,700	31,750
Net profit before tax	81,990	55,475
Tax expense	19,980	12,775
Net profit after tax	62,010	42,700
Retained earnings (1/7/21)	131,400	55,125
Retained earnings (30/06/22)	193,410	97,825
Share Capital	172,800	115,500
General reserve	8,000	3,000
Transfer from BCBR
BCVR
Total equity	374,210	216,325
Other Payables	37,980	18,375
Dividend Payable	22,000	7,000
Debentures	100,000	50,000
Deferred tax liability	114,800	26,250
Total liabilities	274,780	101,625
Total equity and liabilities	648,990	317,950
Land	100,000	50,000
Brand
Plant	152,600	197,688
Accumulated depreciation	-32,940	-58,538
Patents	21,600	19,425
Accumulated amortisation	-5,000	-2,000
Motor vehicle	50,000
Accumulated depreciation	-5,000
Investments in debentures	-	20,000
Shares in Snake Ltd	257,000	-
Deferred tax asset	14,580	16,538
Inventories	51,300	43,050
Other receivables	14,850	21,787
Goodwill	30,000	10,000
Accumulated impairment
Total assets	648,990	317,950