The statements of financial position of Nanotech Co and Megabyte Co as at 31^st December 2019 are as follows:

	Nanotech Co	Megabyte Co
Assets	$000	$000
Property, plant and equipment	5,550	750
Investment in Megabyte Co	1,500
	7,050
Current assets	4,950	400
	12,000	1,150
Equity
Ordinary share capital	6,000	700
Retained earnings	3,750	250
Liabilities
Current liabilities	2,250	200
	12,000	1,150

Additional information:

1. Nanotech Co acquired the entire share capital of Megabyte Co on 31^st December 2016. However, the share capital of Megabyte Co has not changed since that time.
2. The PPE of Megabyte Co was revalued at fair value on 31^st December 2016, for $550,000, as compared with their book value on that date of $350,000. This revaluation was not recorded by Megabyte Co.
3. Retained earnings of Megabyte Co were $150,000 on 31^st December 2016
4. Since the date of acquisition, Goodwill arising on consolidation has an impairment loss of 20%.

Required

1. Prepare a consolidated statement of financial position as at 31^st December 2019 (14 marks). In your calculation, ignore the depreciation effects of the fair value adjustment.

Show clearly the computation of Goodwill (6 marks) and Retained Earnings (5 marks) Total of 25 marks

prepare a consolidated statement of financial position

show clearly the computation of goodwill