On January 1, Year 1, Popa Inc. acquired 80% of the outstanding common shares of Montreal Ltd. for a total cost of $5,360. Coincidently, the carrying amounts of Montreals assets and liabilities were equal to their fair values on this date.

The year 1 financial statements for Popa and Montreal were as follows:

INCOME STATEMENTS
For year ending December 31, Year 1
	Popa			Montreal
Sales	$	13,000		$	4,400
Equity method income		640			0
Total income		13,640			4,400
Cost of goods sold		10,100			2,900
Other expenses		1,400			700
Total expenses		11,500			3,600
Profit	$	2,140		$	800

STATEMENTS OF FINANCIAL POSITION
December 31, Year 11
	Popa			Montreal
Land	$	5,000		$	1,500
Plant and equipment, net		19,200			12,200
Investment in Montreal		5,600
Current assets		4,540			2,700
Total assets	$	34,340		$	16,400
Ordinary shares	$	10,000		$	2,400
Retained earnings		10,440			4,600
Long-term liabilities		8,000			5,500
Current liabilities		5,900			3,900
Total equity and liabilities	$	34,340		$	16,400

Additional Information

• Popa uses the equity method to account for its investment in Montreal.
• Montreal paid dividends of $500 in Year 1.

Required: Prepare consolidated financial statements for Year 1. (Input all values as positive numbers.)

On January 1, Year 1, Popa Inc. acquired 80% of the outstanding common shares of Montreal Ltd. for a total cost of $5,360. Coincidently, the carrying amounts of Montreals assets and liabilities were equal to their fair values on this date.

The year 1 financial statements for Popa and Montreal were as follows:

INCOME STATEMENTS
For year ending December 31, Year 1
	Popa			Montreal
Sales	$	13,000		$	4,400
Equity method income		640			0
Total income		13,640			4,400
Cost of goods sold		10,100			2,900
Other expenses		1,400			700
Total expenses		11,500			3,600
Profit	$	2,140		$	800

STATEMENTS OF FINANCIAL POSITION
December 31, Year 11
	Popa			Montreal
Land	$	5,000		$	1,500
Plant and equipment, net		19,200			12,200
Investment in Montreal		5,600
Current assets		4,540			2,700
Total assets	$	34,340		$	16,400
Ordinary shares	$	10,000		$	2,400
Retained earnings		10,440			4,600
Long-term liabilities		8,000			5,500
Current liabilities		5,900			3,900
Total equity and liabilities	$	34,340		$	16,400

Additional Information

• Popa uses the equity method to account for its investment in Montreal.
• Montreal paid dividends of $500 in Year 1.

Required: Prepare consolidated financial statements for Year 1. (Input all values as positive numbers.)

Required: Prepare consolidated financial statements for Year 1. (Input all values as positive numbers.)