Office Plus Corporation is a retailer of office supplies and equipment in Vancouver. On March 5, 20X6, Office Plus formed a new corporation in Calgary to operate the same type of business. Office Plus invested $ 200,000 cash in exchange for 10,000 common shares in the new subsidiary, to be known as Plus Limited.

During 20X6, Plus Limited commenced operations. Most of Plus’s initial inventory came from Office Plus. In total, goods that had cost Office Plus $ 200,000 were sold to plus at an assigned value of $ 250,000. These goods were re- priced by Plus to sell for $ 500,000 at retail. At year- end, 30% of the merchandise acquired from Office Plus was still in Plus’s inventory.

Office Plus also extended a loan to plus to finance the start- up costs. A total of $ 150,000 was lent during the year, of which $ 80,000 still owed at year- end. Interest of $ 10,000 on the loan had been accrued by both companies, of which only $ 8,000 had actually been paid during 20X6.

Condensed statements of financial position and statements of comprehensive income of the two companies are presented below, as of December 31, 20X6.

Required

Prepare a consolidated SFP and SCI for Office Plus Corporation at December 31, 20X6.

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Statements of Financial Position December 31, 20X6 OfficePlus 85,000 275,000 440,000 500,000 (200,000) 200,000 1300,000 300,000 270,000 50,000 680,000 $1,300,000 Accounts and other receivables Inventories Capital assets Accumulated amortization Investment in Plus (at cost) Plus 10,000 130,000 60,000 400,000 (30,000) Accounts and other payables Long-term liabilities Common shares Retained eamings 570,000 $150,000 200,000 200,000 20,000 $570,000 Statements of Comprehensive Income Year Ended December 31, 20X6 $2,000,000 70,000 2,070,000 1,700,000 370,000 $600,000 Sales Other income 600,000 540,000 Net income Statements of Changes in Equity Retained Earnings Section Year Ended December 31, 20X6 Retained eamings, December 31, 20X5 Net income Dividends Retained eamings, December 31, 20x6 510,000 370,000 (200,000) 680,000 60,000 (40,000) 20,000