P acquired 70% of the shares in S on 1 January 2008 when S had retained earnings of $14,000. The

market price of S's shares just before the date of acquisition was $1.50. P values NCI at fair value.

Goodwill is not impaired.

During the year to 31 December 20X9, S Co sold goods to P Co for $5,000, the profit to S Co being 20% of selling price. At the end of the reporting period, half of these goods remained unsold in the inventories of P Co.

The statements of financial position of P and S at 31 December 20X8 were as follows:

P S

$ $

Assets

Non-current assets

Property, plant and equipment 71,000 42,000

Shares in S 58,000

129,000 42,000

Current assets 51,000 32,000

Total Assets 180,000 74,000

Share capital $1 shares 100,000 40,000

Retained earnings 64,000 24,000

164,000 64,000

Current liabilities 16,000 10,000

Total equity and liabilities 180,000 74,000

Required

a) What was the goodwill arising on acquisition?

b) At what amount should the non-controlling interest and group retained earnings appear in the consolidated statement of financial position at 31 December 20X8?

c) Prepare the consolidated statement of financial position of the P Group