Statements of comprehensive income for the year ended 31 December 20X9

Mallet Hammer Gavel

Sales 225,000 120,000 75,000

Cost of sales 67,500 60,000 30,000

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Gross Profit 157,500 60,000 45,000

Other expenses 70,500 37,500 30,000

Dividends received 7,500 - 7,500

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Profit before tax 94,500 22,500 22,500

Tax 22,500 5,250 6,000

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Profit for year 72,000 17,250 16,500

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Dividends paid in year 30,000 8,000 5,000

Mallet Ltd. acquired 70% of the shares in Hammer Ltd. on 1 January 20X5 when the balance on the retained earnings of Hammer Ltd. was 45,000 and the balance on the general reserve of Hammer Ltd. was 12,000. The fair value of the land at the date of acquisition was 50,000 in Hammer Ltd. The fair value of the non-controlling interest in Hammer Ltd. on 1 January 20X5 was 38,000. Group policy is to measure non-controlling interests at fair value.

Mallet Ltd. also acquired 30% of the shares in Gavel Ltd. on 1 January X6 when the balance on Gavels retained earnings was 22,500 and the general reserve 6,000.

During the year to 31 December 20X9 Mallet Ltd. sold Hammer Ltd. goods for 15,000 which included a mark-up of one-quarter. 70% of these goods are still in inventory at the end of the year.

Required:

Prepare a consolidated statement of comprehensive income for the year ending 31 December 20X9, including the associated company Gavels results.