On 1 October 20X7, Pedantic acquired 80% of the equity share capital of Sophistic in a share exchange of two shares in Pedantic for three shares in Sophistic. The issue of shares has not yet been recorded by Pedantic. At the date of acquisition shares in Pedantic had a market value of $5 each. Below are the summarised draft financial statements of both entities. Statement of profit or loss for the year ended 30 September 20X8

Statement of profit or loss for the year ended 30 September 20X8 Pedantic Sophistic $000 $000 Revenue 85,000 42,000 Cost of sales (63,000) (32,000) Gross profit 22,000 10,000 Distribution costs (4,000) (3,500) Administrative expenses (8,000) (1,000) Finance costs (600) (500) Profit before tax 9,400 5,000 Income tax expense (2,162) (1,000) Profit for the year 7,238 4,000

Statements of financial position as at 30 September 20X8 Pedantic Sophistic $000 $000 Assets Non-current assets Property, plant & equipment 40,600 14,600 Current Assets 16,000 7,100 Total Assets 56,600 21,700

Equity & liabilities Equity shares of $1 each 10,000 6,000 Retained Earnings 35,400 7,000 45,400 13,000

Non-current liabilities 10% Loan Notes 3,000 4,000 Current liabilities 8,200 4,700 Total equity & liabilities 56,600 21,700 The following information is relevant: (i) At the date of acquisition, the fair values of Sophistics net assets were equal to their carrying amounts. (ii) Sales from Sophistic to Pedantic in the post-acquisition period were $6 million. Sophistic made a mark up on cost of 25% on these sales. One-quarter of these goods remained in the inventory of Pedantic at the year-end. (iii) Other than where indicated, statement of profit or loss items are deemed to accrue evenly on a time basis.

(iv) At 30 September 20X8, Sophistic had a receivable due from Pedantic of $1 million. This agreed with the amount payable to Sophistic in Pedantics financial statements. (v) Pedantic has a policy of accounting for any non-controlling interest at fair value. The fair value of the non-controlling interest at the acquisition date was $2.8 million. Consolidated goodwill was not impaired at 30 September 20X8.

Required: Prepare the consolidated statement of financial position for Pedantic as at 30 September 20X8.