The Subsidiary, Smashed On 31 December 2016, Parts Palace Limited acquired 75% of the shares in Smashed Limited. On that date, the equity of Smashed Limited comprised:

At acquisition, the book value of the assets and liabilities of Smashed Limited were considered to be at fair value, except for some non-depreciable assets (included under Other non-current assets and considered to be part of net identifiable assets) that had a book value of zero and where Parts Palace assessed their fair value to be $160,000. There has been no change to assessed value of these assets since acquisition. Goodwill impairment At the most recent balance date (31 December 2019), the returns from Smashed were not as high as expected. The directors of Parts Palace considered that acquired goodwill had been impaired by $250,000. Tax and Deferred Tax Assume a tax rate of 30% wherever relevant

Prepare the consolidated group financial statements in excel format for Parts Palace and Smashed as at 31 December 2019:

nad no 000 $ Share capital Retained earnings Equity 700 400 $1,100 Breakdown of Cost of Sales figures supplied below for 31 December 2019 Parts Smashed Palace $000 $000s 400 450 1250 550 Opening inventory Purchases Closing inventory Cost of sales 300 350 600 1400 Smashed Financial statements Income statement for year end 31 December & Balance sheet as at 31 December 2019 Parts Palace 9000 Sales 4,200 Cost of sales 1,400 Gross profit 2,800 Operating expenses (incl. Interest, Depn & Impairment) 300 Other income (incl. Dividends & Interest) 400 Operating profit before tax 2,900 Income tax 500 Net Profit 2,400 9000s 1,600 600 1,000 400 100 700 300 400 Opening Retained earnings 1,500 3,900 800 3,100 500 900 200 700 Dividends paid Closing retained earnings Share capital Total equity 2,200 5,300 700 1,400 800 600 Accounts Payable Deferred tax Other non-current liabilities Total liabilities 200 130 800 1,130 700 2,100 Total liabilities and equity 7,400 2,530 100 80 200 100 Cash Accounts Receivable Inventory Current assets 300 350 600 530 Investment in Smashed (at Cost) Plant (net) Other non-current assets Non-current assets 2,000 3,700 1,100 6,800 1,300 700 2,000 Total assets 7,400 2,530