On 1 June 20X7 Kha bought 60% of Sha paying $76,000 cash. The summarized statement of financial positions for the two entities as at 30 November 20X7 are

 

	Kha $	Sha $
Non-current assets
Property, plant & equipment	138,000	115,000
Investments	98,000	-
Current assets
Inventory	15,000	17,000
Receivables	19,000	20,000
Cash	2,000	-
Total assets	272,000	152,000
Share capital	50,000	40,000
Retained earnings	189,000	69,000
Total equity	239,000	109,000
Non-current liabilities: 8% Loan notes	-	20,000
Current liabilities	33,000	23,000
Total equity and liabilities	272,000	152,000

 

The following information is relevant:

The inventory of Kha includes $8,000 of goods purchased for cash from Sha at cost plus 25%.

On June 20X7 Kha transferred an item of plant to Sha for $15,000. It is carrying amount at that date was $10,000, and its remaining useful life was 5 years.

Kha values the non-controlling interest using the fair value method. At the date of acquisition, the fair value of the 40% non-controlling interest was $50,000.

An impairment loss of $1,000 is to be charged against good will at the year-end.

At the date of acquisition the balance on Sha’s retained earnings was $63,750.

At the date of acquisition, the fair value of Sha’s property, plant and equipment was equal to its carrying amount with the exception of Sha’s plant which had a fair value of $2,000 above its carrying amount. At that date the plant had a remaining life of four years. Sha uses straight-line depreciation for plant assuming a nil residual value.

The Loan note in Sha’s book represents monies borrowed from Kha on 30 November 20X7.

Included in Kha’s receivables is $4,000 relating to inventory sold to Sha during the year. Sha raised a cheque for $2,500 and sent it to Kha on 29 November 20X7. Kha did not receive this cheque until 4 December 20X7.

 

Required:

Prepare the Consolidated statement of financial position as at 30 November 20X7, using the partially completed worksheet.