S2 Ltd s $ Extracts from the group's statements of financial position as at 31 December 2020 are set out below. P S1 ple Ltd $ ASSETS Non-current assets Property, plant and equipment 1,005,600 284,500 Goodwill 0 0 Investments 272,000 0 1,277,600 284,500 Current assets Inventories 483,400 98,400 Trade and other receivables 211,800 194,500 Cash and cash equivalents 7,600 5,800 702,800 298,700 Total assets 1,980,400 583,200 492,300 0 0 492,300 24,800 30,700 600 56,100 548,400 100,000 207.000 307,000 499,500 28,100 527,600 EQUITY AND LIABILITIES Equity Ordinary share capital ($1 shares) 985,000 Retained earnings 638,900 1,623,900 Current liabilities Trade and other payables 170,500 Income tax 186,000 356,500 Total equity and liabilities 1.980,400 192,200 84,000 276,200 583,200 20,000 800 20,800 548,400 Additional information: a P plc used a proportionate share of the acquiree's net assets method to measure goodwill and the non-controlling interest for Si Ltd. P plc used the fair value method to measure goodwill and the non- controlling interest for S2 Ltd, given that the fair value of the non- controlling interest in S2 Ltd on 1 July 2020 was $110,000. b The fair values of Si Ltd and S2 Ltd assets, liabilities and contingent liabilities on the date of acquisition were equal to their carrying amounts. c The legal fee of $2,000 paid in cash by P plc in respect of the acquisition was debited to investments, the non-current asset in the statement of financial position. d On 1 January 2020, P plc purchased ordinary shares in Si Ltd by cash payment. The percentage of ordinary shares acquired was 60%. The acquisition term about cash payment is as below. - On 1 January 2020, $130,000 cash was paid. e On 1 July 2020, P plc purchased ordinary shares in S2 Ltd by cash payment and non-cash payment. The percentage of ordinary shares acquired was 80%. The acquisition terms about cash payment are as below. - On 1 July 2020, $140,000 cash was paid. If S2 Ltd meets a certain profit target, a further cash payment will be payable on 30 June 2022. On 1 July 2020 the fair value of the possible cash payment was $190,000 considering the fact that the probability of that target would be met. On 31 December 2020 the probability had risen such that the fair value of the possible cash payment was estimated to be $199,000. The acquisition terms about non-cash payment are as below. The number of ordinary shares of P ple was 180,000. The market value of one ordinary share in P plc on 1 July 2020 was $1.3. - On 31 December 2020, the market value of one ordinary share in P ple was $1.5. At the acquisition date, the retained earnings of Si Ltd were $125,500. At the acquisition date, the retained earnings of S2 Ltd were $16,000. f On 30 December 2020, SI Ltd sold goods to P plc on credit and recorded the relevant sales invoice. All sales made by SI Ltd were at a mark-up of 20% on cost. The cost of the sold goods was $18,000. These goods did not arrive at P ple's factory until 3 January 2021 and P ple did not include the goods in the stock-taking process. 4 Prepare the consolidated statement of financial position as at 31 December 2020. (25 marks)