The financial statements of Chiffon Ltd and its subsidiary, Cake Ltd, at the 30 June 2015 contained the following information:

	Chiffon Ltd $	Cake Ltd $
Profit before tax	3200	1800
Income tax expense	1300	240
Profit for the year	1900	1560
Retained Earnngs (1/7/14)	1500	2100
	3400	3660
Dividend paid	500	0
Retained earnings (30/6/15)	2900	3660
Share capital	25000	10000
General reserve	8000	3000
Other components of equity *	1000	500
Liabilities	5000	1300
	41900	18460
Land	8600	5100
Plant	17000	8000
Accumulated depreciation	(5000)	(1000)
Financial assets	3000	2000
Inventory	3000	4000
Cash	300	360
Shares in Cake Ltd	15000	-
	41900	18460

* This relates to the available-for-sale assets financial assets. The balance of the accounts at 1/7/14 were $1500 (Chiffon Ltd) and $300 (Cake Ltd).

Chiffon Ltd had acquired al the shares capital of Cake Ltd on 1 July 2013 for $15000 when the equity of Cake Ltd consisted of:

Share capital 10000 shares	$10000
General reserve	$2000
Retained earnings	$1500

At the acquisition date by Chiffon Ltd, Cake Ltd.s non-monetary assets consisted of:

	Carrying amount $	Fair Value $
Land	4000	6000
Plant (cost $6000)	5500	6500
Inventory	3000	4000

Additional information:

The plant had a further 5-year life.

All the inventory was sold by 30 June 2014.

All valuation adjustments to non-current assets are made on consolidation.

The land was sold in January 2015 for $6000.

The relevant business combination valuation reserves are transferred, on consolidation, to retained earnings.

In September 2013, Cake Ltd transferred $500 from its general reserve, earned before 1 July 2013, to retained earnings.

The tax rate is 30%.

***Can you show workings of the following parts?

a. Calculate gain or loss on purchase

b. Prepare the valuation entries at 1 July 2015

c. Prepare the consolidation worksheet

d. Prepare the Consolidated Statement of Comprehensive Income for the financial year ending 30 June 2015

e. Prepare the Consolidated Statement of Changes in Equity for the financial year ending 30 June 2015

f. Prepare the Consolidated Statement of Financial Position for the financial year ending 30 June 2015