Q.4 Apple Co acquired 75% of the shares of Wine Co on 1 January 2015 when the retained earnings of Wine Co stood at $10,000. The fair value of the non-controlling at the date of acquisition was $15,000. During the year to 31 December 2015, Wine Co sold goods to Apple Co for $20.000 at a mark-up of 25%. 50% of these goods were still unsold by Apple Co at the end of the year. At the same date, Apple Co owed Wine Co $12,000 for goods bought and this debt is included the trade payables of Apple Co and the trade receivables of Wine Co. Draft statements of financial position of each company at 31 December 2015 were as follows: Apple CO Wine Co S SI Assets 80,000 40,000 46,000 Non-current assets Property, plant and equipment Investment in Wine CO at cost Current assets Inventory Trade receivables 10.000 5.000 23,000 25,000 Cash 5.000 2,000 166,000 70.000 Total assets Equity and liabilities Equity Ordinary shares Retained earnings 100,000 30,000 45,000 22.000 Current liabilities Trade payables 20,000 17,000 Bank overdraft 1,000 1.000 Total equity and liabilities 166,000 70,000 Required: a) Discuss group accounts under the following headings: 1) Control 11) The method of preparing a consolidated statement of financial position Intra -group trading b) Using the information in the case study above, prepare the consolidated statement of financial position