Question 4 (25 marks) On 1 July 20X3 Blofeld Ltd gained control of Tatiana Ltd by buying 60% of its shares for $59,000. At this date Tatiana had share capital $40,000 and retained profits $30,000. Financial statements for the financial year ended 30 June 20X8 are shown in the worksheet attached. * Intercompany inventory sales of the 20X8 financial year totalled $30,000. * Blofeld holds inventory purchased from Tatiana in 20X8. The mark-up was $1,480. All of these goods are still in Blofeld inventory at end of year. * Blofeld has paid 15% interest on the loan from Tatiana. * Goodwill impairment is $750 in financial year ended June 30 20X7 and $850 in 20X8. * Dividends are paid out of current period profit. * Blofeld has other share investments (not consolidated). * On July 1 20X7 Tatiana Ltd purchased a cipher machine (included in Other Assets) from Blofeld Ltd for $5,000. The carrying amount of the machine to Blofeld had been zero. Depreciation policy for Tatiana is 25 percent per annum straight line. Depreciation policy for Blofeld is 40 percent per annum reducing balance. * The partial goodwill method is used. REQUIRED Complete the consolidation worksheet on the next page.