the statements of financial position of red ltd and pink ltd at 31 december 20×2 are 1572179

The statements of financial position of Red Ltd and Pink Ltd at 31 December 20X2 are as follows: Red Pink

Red Ltd acquired 75% of the shares in Pink Ltd on 1 January 20X0 when Pink Ltd’s retained earnings were $30,000 and the balance on Pink’s general reserve was $8,000. The fair value of the non-controlling interest at the date was £32,000. Non-controlling interests are to be measured using method 2. During the year Pink sold Red goods for $9,000 plus a mark-up of one-third. Half of these goods were still in inventory at the end of the year. Goodwill suffered an impairment loss of 20%.

Required:

Prepare a consolidated statement of comprehensive income for the year ended 31/12/20X2 and a statement of financial position as at that date.