Oz Plc has owned 60% of the share capital of Tim Plc for many years. Retained earnings of Tim Plc for the year end 31st December 2020 are 1,600,000.

Oz Plc bought 25% of the share capital of Conner Plc on 1st January 2020 at cost of 1,500,000. Conner has made a profit for the year ended 31st Dec 2020 of 400,000 and has sold goods to Oz Plc during the year with a sales value of 120,000. All sales were at a margin of 20% and half of them remain in year-end inventories. Oz Plc has retained earnings at 31st December 2020 of 3,000,000.

Complete the statements below by filling in the blanks:

The amount of investment in Conner to be shown in the consolidated statement of financial position for the year ended 31 December is Blank 1.

The share of profits of Conner to be shown in the consolidated statement of profit or loss for the year ended 31 December 2020 is Blank 2.

To calculate the group retained earnings the following amounts needs to be included.

Parent RE Blank 3; Parent share of subsidiary post acquisition RE Blank 4; parent share of associates post acquisition RE Blank 5 and any adjustments Blank 6.

Group retained earnings to be shown in the consolidated statement of financial position is Blank 7.

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