You are presented with the following information for Bradshaw and its subsidiary, Martin: Statements of profit or loss for the year ended 31 October 2016 Bradshaw Martin $000 Revenue 125,000 77,900 Cost of sales (65,000) (38,500) Gross profit 60,000 39,400 Distribution costs (6,750) (8,050) Administrative expenses (17,500) (9,780) Finance costs (20) Income from Martin: Loan note interest 15 Dividends 5,200 Profit before tax 40,965 21,550 Income tax expense (19,250) (10,850) Profit for the year 21,715 10,700 The following information is also available: (i) Bradshaw purchased 18,520,000 $1 ordinary shares in Martin on 1 November 2015 for $34.000,000. At that date Martin's retained earnings were $5,338,000. (1i) It is group policy to value the non-controlling interest at fair value. The fair value of the non- controlling interest at the acquisition date was $7,408,000. (iii) Bradshaw owns $150,000 of Martin's $200,000 loan notes. The annual interest rate on the loan notes is 10%. (iv) During the year ended 31 October 2016 Bradshaw sold goods to Martin for $15,000,000. Bradshaw made a profit on these goods of $2,500,000. Martin still has all of these goods in inventory at 31 October 2016. (v) All Martin's dividends of $6,500,000 were paid in the financial year ended 31 October 2016. Required: (a) Calculate the goodwill arising on the acquisition of Martin as at 1 November 2015. (3 marks) ( b) Prepare the consolidated statement of profit or loss for the year ended 31 October 2016. (8 marks)