On 1 July 20X3 Pepe Ltd gained control of Kitty Ltd by buying 70% of its shares for $59,000. At this date Kitty had share capital $40,000 and retained profits $35,000. Financial statements for the year ended 30 June 20X5 are shown in the worksheet attached.

* Intercompany sales of the 20X5 financial year totalled $40,000.

* Pepe holds inventory purchased from Kitty in 20X5. The mark up was $1,930.

* Pepe has paid 17% interest on the loan from Kitty.

* Goodwill impairment is $750 in year ended 20X4 and $850 in 20X5.

* Dividends are paid out of current period profit.

* Pepe has other share investments (not consolidated).

* On July 1 20X4 Pepe purchased an impressionist painting (included in Other Assets) from Kitty for $20,000. The carrying amount of the painting to Kitty had been $15,000, its fair value. As it is an artwork the painting is not depreciable.

Required:

Complete the consolidation worksheet as below

Combined consolidation worksheet as at 30 June 20X5 Pepe Kitty Sum Eliminations Group Allocation to NCI Parent Sales Cogs Gross profit Other revenues 94 00082 000 176 000 57 000 36 000 93 000 37 00046 000 83 000 17 000 8 000 25 000 Other expenses 22 000 (36 000 (58 000 Net profit Retained profits 32 00018 000 50 000 1 July 20X4 6 600 38 00044 600 Profit available less Dividends Retained profits Capital Owners 'equity101 600 81 000 182 600 Dividend payable27 000 15 000 42 000 Loan from Kitty Other liabilities 38 600 56 000 94 600 27 000 15 000 42 000 11 600 41 000 52 600 90 000 40 000 130 000 46 000 - 46 000 12 00052 000 64 000 Total equities 186 600 148 000 334 600 Inventory Divi'd receivable 10 750 Loan to Pepe Investm't in S 23 400 26 000 49 400 10 750 46 00046 000 59 000 ub 59 000 Other assets net 93 450 76 000 169 450 186 600 148 000 334 600 Combined consolidation worksheet as at 30 June 20X5 Pepe Kitty Sum Eliminations Group Allocation to NCI Parent Sales Cogs Gross profit Other revenues 94 00082 000 176 000 57 000 36 000 93 000 37 00046 000 83 000 17 000 8 000 25 000 Other expenses 22 000 (36 000 (58 000 Net profit Retained profits 32 00018 000 50 000 1 July 20X4 6 600 38 00044 600 Profit available less Dividends Retained profits Capital Owners 'equity101 600 81 000 182 600 Dividend payable27 000 15 000 42 000 Loan from Kitty Other liabilities 38 600 56 000 94 600 27 000 15 000 42 000 11 600 41 000 52 600 90 000 40 000 130 000 46 000 - 46 000 12 00052 000 64 000 Total equities 186 600 148 000 334 600 Inventory Divi'd receivable 10 750 Loan to Pepe Investm't in S 23 400 26 000 49 400 10 750 46 00046 000 59 000 ub 59 000 Other assets net 93 450 76 000 169 450 186 600 148 000 334 600