1. Prepare the consolidation worksheet for the preparation of the consolidated financial statements for the period ended 31 December 2022
2. Prepare the consolidated Statement of Profit and Loss and Other Comprehensive Income at 31 December 2022 for Moon Ltd and its subsidiary Light Ltd as of 31 December 2022.

CONSOLIDATIONS AND INTER-COMPANY TRANSACTIONS. The financial information for Moon Ltd and its 100% owned subsidiary, Light Ltd, for the period ended 31 December 2022 is as follows: Moon Ltd Light Ltd $ 60 000 $ 57 000 3 000 0 Sales revenue Dividend revenue Gain on sale of property, plant and equipment Other income 3 000 5 000 4 000 6 000 Total income 70 000 68 000 45 000 38 000 Cost of sales Other expenses 7 000 4 000 Total expenses 52 000 42 000 26 000 18 000 5 800 6 100 Profit before income tax Income tax expense Profit for the period Retained earnings (1/1/22) 12 200 19 900 14 000 9 000 26 200 28 900 Interim dividend paid 7 000 3 000 Retained earnings (31/12/22) 19 200 25 900 Moon Ltd acquired its shares in Light Ltd at 1 January 2022 for $45 000 on a cum div. basis. At that date, Light Ltd recorded share capital of $30 000. Light Ltd had declared prior to the acquisition a dividend of $5000 that was paid in April 2022. At 1 January 2022, all identifiable assets and liabilities of Light Ltd were recorded at fair value except for inventories, for which the carrying amount was $700 less than fair value. There was a fall in sales due to some negative google reviews and hence, 10% of inventories was still on hand at 31 December 2022. Inventories on hand in Light Ltd at 31 December 2022 also includes some items acquired from Moon Ltd during the period ended 31 December 2022. These were sold by Moon Ltd for $12 000, at a profit before tax of S4000