PaperHouse Company is engaged in the papermaking industry, and has one subsidiary ShuLin Company. PaperHouse Company owns 75% of the voting shares of ShuLin Company which were acquired on 01 April 2018, when the accumulated retained earnings was $ 2.45 million. The statements of profit or loss for both companies for the year ended 30 June 2018 were as follows:

	PaperHouse Co	ShuLin Co.
	$ 000	$ 000
Revenue	26,338	21,700
Cost of sales	(22,188)	(18,589)
Gross profit	4,150	3,111
Dividend income	490	112
	4,640	3,223
Distribution costs	(800)	(1,442)
Administrative expenses	(991)	(362)
Finance costs	(350)	(175)
Profit before tax	2,499	1,244
income tax expense	(469)	(168)
Profit for the year	2,030	1,076

NOTE (i) ShuLin Company has paid a final dividend of $ 0.16 per ordinary share on 30 June 2018. The issued share capital of ShuLin Company is 350,000 ordinary shares of $ 1 each. The dividend received from ShuLin Company has been accounted in dividend income.

(ii) A goodwill amounting to $ 10 million arose upon acquisition of ShuLin Company. It has been assessed that goodwill has been impaired by 5%. The group uses the proportion of net assets method to measure goodwill.

(iii) PaperHouse Company occasionally trades with its subsidiary company. On 01 May 2018, PaperHouse Company had sold goods amounting to $ 2 million to ShuLin Company at a mark-up of 25%. One-fifth of these goods remained in inventory at the financial year end.

(iv) The fair values of the net assets of ShuLin Company at the date of acquisition were equal to their carrying amounts with the exception of an item of plant which had a carrying amount of $ 30 million and a fair value of $ 32 million. This plant had a remaining life of five years (straight-line depreciation) at the date of acquisition. ShuLin Company has not adjusted the fair value in its financial statement. Depreciation is normally charged in Administrative expenses.

REQUIRED

Prepare the consolidated statement of profit or loss for the year ended 30 June 2018