Portal Ltd. (Portal) purchased 80% of the common shares of Lazer Ltd. (Lazer) on December 31, 2016, for $3,680,000. On the acquisition date, the carrying amount of Lazer’s identifiable net assets was $4,130,000. The carrying amounts were equal to fair values except for the following:

	Carrying amount	Fair value
Inventory	$920,000	$950,000
Land	200,000	587,000
Long-term debt (maturity date, December 31, 2020)	500,000	540,000

The land was sold to a developer on June 13, 2018, for $645,000.

Portal’s and Lazer’s internal statements of comprehensive income and retained earnings for the year ended December 31, 2021, were as follows:

	Portal Ltd.	Lazer Ltd.
Sales revenue	$17,527,000	$12,144,000
Investment income	160,000	—
Total revenue	17,687,000	12,144,000
Cost of goods sold	9,727,000	7,280,000
Interest expense	375,000	256,000
Depreciation and amortization expense	782,000	592,000
Other expenses	3,494,000	1,611,000
Income tax expense	1,355,000	953,000
Total expenses	15,733,000	10,692,000
Net income	1,954,000	1,452,000
Retained earnings, beginning	1,741,000	1,407,000
Dividends declared	(320,000)	(200,000)
Retained earnings, ending	$ 3,375,000	$ 2,659,000

Portal’s and Lazer’s statements of financial position as at December 31, 2021, were as follows:

Assets	Portal Ltd.	Lazer Ltd.
Cash	$ 384,000	$ 875,000
Accounts receivable	2,547,000	1,972,000
Inventory	1,246,000	973,000
Total current assets	4,177,000	3,820,000
Investment in Lazer Ltd.	3,680,000	—
Land	420,000	300,000
Plant and equipment (net)	10,928,000	8,791,000
Total assets	$19,205,000	$12,911,000
Liabilities and shareholders’ equity Current liabilities	$ 2,830,000	$ 1,852,000
Long-term liabilities	9,000,000	6,400,000
Shareholders’ equity Common shares	4,000,000	2,000,000
Retained earnings	3,375,000	2,659,000
Total shareholders’ equity	7,375,000	4,659,000
Total liabilities and shareholders’ equity	$19,205,000	$12,911,000
Additional information:

1. 
   
2. 1) On December 31, 2020, Lazer purchased some equipment from Portal for $720,000. The expected useful life of the equipment was 10 years on the day of the purchase. The carrying amount of this equipment in Portal’s accounts just before the purchase was $570,000.
3. 
   
4. 2) In December 2021, Lazer sold $500,000 of products to Portal. The cost of this inventory to Lazer was $330,000. At the December 31, 2021, year end, Portal had NOT yet paid for the inventory and had NOT yet sold any of it.
5. 3) Lazer’s share capital has NOT changed since incorporation.
6. 4) Portal accounts for its investment in Lazer using the cost method and uses the fair value enterprise (FVE) method to value non-controlling interest.
7. 5) Both Portal and Lazer are subject to tax at a rate of 40% and report under IFRS.

Required:

1. a) Prepare Portal’s consolidated statement of financial position as at

December 31, 2021, including deferred income taxes and non-controlling interest.

(21 marks)

2. b) Calculate the following items from Portal’s consolidated statement of comprehensive income for the year ended December 31, 2021:
   1. 1) Cost of goods sold
   2. 2) Depreciation and amortization expense