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The financial statements of Company Permanent and its subsidiary Company Senior are shown below: Statement of Financial Position As at 31 December 2030 Permanent $
The financial statements of Company Permanent and its subsidiary Company Senior are shown below: Statement of Financial Position As at 31 December 2030 Permanent $ Investment in Senior 450,000 Other net assets 4,653,400 5,103,400 Senior $ 605,550 605,550 Share capital Retained earnings 2,350,000 2,753,400 5,103,400 300,000 305,550 605,550 Income Statement and Partial Statement of Changes in Equity For the Year Ended 31 December 2020 Permanent Senior $ $ Sales 10,000,000 3,300,000 Cost of sales (9,000,000) (3,139,450) Dividend income from Senior 24,000 Profit before tax 1,024,000 160,550 Tax (220,000) (35,000) Profit after tax 804,000 125,550 Retained earnings, 1 January 2020 2,050,000 210,000 Dividends declared (100,600) (30,000) Retained earnings, 31 December 2020 2,753,400 305,550 (A) Permanent acquired 80% of interest in Senior on 1 January 2018 when the shareholders' equity of Senior was as follows: Share capital Retained earnings $300.000 $130,000 Fair value of identifiable net assets of Senior was close to the book value. (B) Non-controlling interest is calculated on a fair value basis, and it was $112,000 on 1 January 2018 (C) Goodwill impairment was $60,000 in 2019 and $50,000 in 2020. (D) Intercompany sales from Senior to Permanent during 2020 was $90,000. Cost to Senior was $60,000. All the purchase was still kept by Permanent as at 31 December 2020. Required: a. Prepare the consolidation adjustment and elimination entries for the year ended 31 December 2020. Show all relevant workings. Worksheets are not required. b. Prepare the Consolidated Statement of Financial Position as at 31 December 2020 and the Income Statement and Partial Statement of Changes in Equity for the year ended 31 December 2020. Worksheets are required
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