Sandy Ltd acquired $100$ per cent of the issued capital of Beach Ltd on $30$ June $2022$ for $$900000,$ when the statement of financial position of Beach Ltd was as follows:

Statement of financial position of Beach Ltd as at $30$ June $2022$

$$000$ $$000$

Assets Liabilities

Accounts receivable $70$ Loan $300$

Inventory $100$

Land $400$ Shareholders$$ equity

Property, plant and equip. $700$ Share capital $500$

Accumulated depreciation $(270)$ Retained earnings $200$

$10001000$

Additional information

The tax rate is $30$ per cent.

As at the date of acquisition, all assets of Beach Ltd were at fair value, other than the property, plant and equipment, which had a fair value of $$530000.$ Beach Ltd adopts the cost model for measuring its property, plant and equipment. The property, plant and equipment is expected to have a remaining useful life of $10$ years, and no residual value.

One year following acquisition it was considered that Beach Ltd$$s goodwill had a recoverable amount of $$60000.$

Beach Ltd declared a dividend of $$40000$ on $10$ July $2022,$ with the dividends being paid from pre$-$acquisition retained earnings.

The statements of financial position and details of opening and closing retained earnings of Sandy Ltd and Beach Ltd one year after acquisition are as follows:

Page $1004$Statements of financial position of Sandy Ltd and Beach Ltd as at $30$ June $2023$

Sandy Ltd

$($$$000)$ Beach Ltd

$($$$000)$

Assets

Cash $8040$

Accounts receivable $5050$

Inventory $140123$

Land $600400$

Property, plant and equipment $900700$

Accumulated depreciation $(300)(313)$

Investment in Beach Ltd $900$

Total assets $23701000$

Liabilities

Accounts payable $10010$

Dividends payable $10050$

Loan $670140$

Shareholders$$ equity

Share capital $1000500$

Retained earnings $500300$

$23701000$

Reconciliation of opening and closing retained earnings

Profit after tax $400190$

Retained earnings$30$ June $2022300200$

Interim dividend $(90)(40)$

Final dividend $(110)(50)$

Retained earnings$30$ June $2023500300$

 

 

REQUIRED:

Prepare the consolidated statement of financial position for the above entities as at $30$ June $2023.$