Parent plc acquired 68% of Sub plc’s share capital on 1 January 2009. The balance on Sub plc’s retained earnings at that date was $2,500 and the share capital was $3,000 (1$ par value). 

A-    In arriving at the consideration for the shares in Sub, the book value of Sub’s property, plant, and equipment were found to be $500 above the fair value -5 years remaining life.

B-    In 2009, Parent plc sold inventory to Subsidiary plc. The Sold inventory had a cost of $180 and the sale yielded a gross profit percentage of 20%. One fourth of these goods were sold by Subsidiary plc by 31 December 2010.

C-    Goodwill was impaired by 80% during the year 2010. There was no impairment in 2009

D- On 1 January 2010, Parent plc sold a depreciable plant asset to Sub plc for $4,760. This asset was purchased by Parent on 1 January 2005 for $ 7,200 and was depreciated using the straight-line method over its 12 years useful life and zero residual value. After the sale, the plant asset is depreciated by Sub plc using the straight-line method over its remaining useful life.

E-  The accounts receivable in Sub plc include a $77 due from Parent plc and the accounts payable in Parent plc include $ $60 due to Sub plc. The differences between the two balances relate to $17 being paid and recorded by the Parent in December 2010 but not received by the Subsidiary until after year-end in January 2011.

F-     Goodwill is calculated using the full goodwill method.

The statements of financial position for the two companies were as follows as of 31 December 2010

	Parent $	Sub $
Non-Current Assets
Plant property and Equipment	15,460	9,000
Investment in Sub plc at cost	8,500
Current Assets
Inventory	1,800	770
Accounts Receivable	1,000	650
Cash	450	-
Total Assets	27,210	10,420
Current Liabilities
Accounts payable	2,210	2,920
Equity
Share Capital 1$ par	10,000	3,000
Retained Earnings	15,000	4,500
Total Liabilities and Equity	27,210	10,420

The consolidated figure for the group’s accounts receivable on 31 December 2010 is?

Select one:

a. $1,450

b. $1,650

c. None of the above

d. $1,573

e. $1,300