Sam Ltd acquired 90% of the ordinary shares of Paige Ltd on 1 July 2011 at a cost of $150,750. At that date the equity of Paige Ltd was: Share capital Reserve Retained earnings $100,000 8,000 12,000 At July 2011, all the identifiable assets and liabilities of Paige Ltd were at fair value except for the following assets: Inventory Depreciable assets Carrying amount $10,000 25,000 Fair value $15,000 35,000 The inventory was all sold by 30 June 2012. Depreciable assets have an expected further 5-year life, with depreciation being calculated on a straight-line basis. Valuation adjustments are made on consolidation. Sam Ltd uses the partial goodwill method. On 1 July 2014, Sam Ltd acquired 40% of the capital of Kayla Ltd for $4,500 and recognized investment in an associate. Kayla has a retained earnings of $2,150 and a share capital of $10,000 on 1 July 2014. All the identifiable assets and liabilities of Kayla Ltd were recorded at fair value except for the following: Inventory Depreciable assets Carrying amount $1,000 6,000 Fair value $1,500 7,000 All this inventory was sold in the 12 months after 1 July 2014. The depreciable assets were considered to have a future 5-year life. For the year ended 30 June 2015, Kayla Ltd recorded a profit after tax of $2,000. Kayla Ltd paid a dividend of $200 in January 2015. Sam Ltd. Treats dividend receipts as dividend revenue. During the year ended 30 June 2015, Kayla Ltd sold inventory to Sam Ltd for $6,000. The cost of this inventory to Kayla Ltd was $4,000. Sam Ltd has resold only 20% of these items before the year end. On 1 January 2015, Sam Ltd sold Kayla Ltd a motor vehicle at a profit of $800. Both companies treat motor vehicles as non-current assets. Both companies charge depreciation at 20% p.a. on the reducing balance. The financial statements for Sam Ltd, Paige Ltd, and Kayla Ltd for the financial year ended 30 June 2015 are shown below. Sales revenue COGS Gross profit Depreciation expense Other expenses Other revenue Profit before tax Income tax expense Profit after tax Retained earnings (1/7/2014) Dividends appropriation Sam Ltd 200,000 (110,000) 90,000 (16,000) (22,000) 30,000 82,000 (20,000) 62,000 120,000 (20,000) Paige Ltd 60,000 (30,000) 30,000 (4,000) (3,000) 5,000 28,000 (10,000) 18,000 80,000 (4,000) Kayla 25,000 (14,000) 11,000 (3,000) (6,000) 600 2,600 (600) 2,000 2,150 (200) Retained earnings (30/6/2015) Reserve Share capital Total equity Accounts payable Notes payable Total liability and equity Depreciable assets Accumulated depreciation. Investment in Paige Ltd, at cost Investment in Kayla Ltd, at cost Inventory Accounts receivable Cash 162,000 10,000 800,000 972,000 40,000 100,000 1,112,000 400,000 (80,000) 150,750 4,500 300,000 230,000 106,750 94,000 8,000 100,000 202,000 20,000 222,000 70,000 (9,000) 50,000 90,000 21,000 3950 10,000 13,950 5,000 18,950 12,000 (1,500) 6,000 500 1,950 Cash 106,750 21,000 1,950 18,950 Total assets 1,112,000 222,000 Note: Other revenue include dividend revenue and gain on sale of non-current assets. Required: Prepared consolidated financial statements for the year ended 30 June 2015 for the above companies.