On1 January 2015 Charles Limited acquired 80% of the shares of Camilla Limited for $48 000 , this esulted in control over Camilla Limited . At this date . all assets and liabilities were recorded at their fair value and the equity of Camilla Limited consisted of Share Capital 5000 General Reserve 5000 Retained Profits 25000 45000 Financial statements for Charles Limited and Camilla Limited for the year ended 31 December 2017 are shown in the worksheet attached on page 13 of this examination pape Additional information Intercompany sales from Camilla Limited to Charles Limited for the year ended 31 December 2017 ofalled $17 000 . The total profit made by Camilla in respect of intercompany sales during the year was $6 000 . 30% of this inventory remains unsold at the end of the period On 1 January 2017 Charles Limited sold an item of plant to Camilla Limited for $10,000 At this date the carrying amount of the plant was $7 000 ( original cost of $12,000 ) . The item of plant was depreciated by Charles Limited at $2 000 p. a Camilla Limited depreciated the plant at $3 000 in the current yea Charles Limited advanced an interest - free loan to Camilla Limited on 1 January 2016 . It is expected this loan will be repaid in five ( 5 years The following goodwill impairment was $3 500 for 31 December 2016 and $2 500 for 31 December 2017 The dividend declared by Camilla Limited is from post acquisition profitsCombined consolidation worksheet as at 31 December 2017 Charles Camilla Sum Eliminations Group Allocation to Dr Cr NCI Parent Sales 90,000 72,000 162,000 Cost of sales 54.000 30,000 84.000 Gross profit 36,000 42,000 78,000 Other revenues 24,000 10,000 34,000 Other expenses (18.000)(27.000) (45.000) Profit or loss 42,000 25,000 67,000 Retained profits SOP 1 Jan 2017 56,000 50,000 106,000 Profit available 98,000 75,000 173,000 Dividends declared (20,000) (15 000) (35,000) Retained profits -EOP | 78,000 60,000 138,000 General Reserve 6,000 6,000 Capital 000 08 15,000 95.000 Owners 'equity 158,000 81,000 239,000 Dividend payable 20,000 15,000 35,000 Loan from Charles 20,000 20,000 Other liabilities 32,000 64,000 96,000 Accum. goodwill Impairment Total equities 230,000 160,000 390,000 Inventory 50,000 45,000 95,000 Dividend receivable 12,000 12,000 Loan to Camillia 20,000 20,000 Investment in Camilla 48,000 48,000 Consolidation goodwill Other assets net 70,000 60,000 130,000 Plant & Equip (net dep) 50,000 35,000 85,000 230,000 160,000 390,000