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On January 1, Year 6, HD Ltd, a building supply company, JC Ltd., a construction company, and Mr. Saeid, a private investor, signed an agreement

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On January 1, Year 6, HD Ltd, a building supply company, JC Ltd., a construction company, and Mr. Saeid, a private investor, signed an agreement to carry out a joint operation under the following terms and conditions: - A partnership under the name of Olympic Homes would be established. - JC would identify the homes for renovation. - Olympic Homes would purchase the home and arrange a first mortgage on the property when the home is purchased for renovation and resale. - JC would perform the renovation work at a discounted fee. - HD would supply all of the construction materials at a reduced markup from its regular sales. - Mr. Saeid would guarantee the payment of the mortgage and would lend money to Olympic for the down payment on the purchase. of the property and to finance the cost of materials and labour during the renovation. The loans would be interest free with no monthly payments and would be repayable out of the proceeds on sale of the property. - All three parties would each contribute $144,000 as start-up capital, would have a one-third interest in the assets, be responsible for one-third of the liabilities and would receive one-third of the profit from the Partnership. - All three parties must agree on major operating and financing decisions with respect to operations carried out by Olympic. Condensed financial statements for HD Ltd. and Olympic for the year ended December 31, Year 6 , were as follows: Additional information: - During Year 6,HD had sales of $135,000 to JC at a markup of 20 percent of selling price. At December 31 , Year 6 , the property under renovation included supplies purchased from HD of $63,000. - Olympic completed two projects under the joint operations. Olympic distributed $51,000 of income to each of the partners in December. - HD accounts for its share of income from the joint operations when it is received from Olympic. - HD pays income tax at a rate of 40%. The income earned by Olympic is not taxed in Olympic. It is flowed through and taxed in the hands of the partners. Required: Prepare corrected Year 6 financial statements for HD in accordance with IFRS 11. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "o" wherever required. Input all amounts as positive values. Omit $ sign in your response.) cells blank - be certain to enter " 0 " wherever required. Input all amounts as positive values. Omit 5 sign

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