On January 1, 2009, Kundi acquired (cum div.) a 70% interest in Eagle. The following balances appeared in the records of Eagle at this date:

Share capital€”100,000 shares... $100,000

Retained earnings ......... 72,000

Dividend payable......... 5,000

At January 1, 2009, the carrying amounts and fair values of Eagle€™s identifiable assets and liabilities were as shown below.

Any differences between carrying amounts at acquisition and fair values are adjusted on consolidation. The noncurrent assets were deemed to have the following remaining useful lives:
Vehicles........5 years
Plant.........8 years
Furniture and fixtures...7 years
In addition, Eagle had recorded goodwill of $3,500 at January 1, 2009. Kundi uses the partial goodwill method.
The following events occurred between the acquisition date and December 31, 2012.
1. By December 31, 2012, 80% of the inventory on hand at January 1, 2009, had been sold, and all accounts receivable deemed to be collectable at January 1, 2009, had been received.
2. On February 15, 2011, the dividend declared as at January 1, 2010, was paid.
3. On 15 September 2011, Eagle paid a $12,000 dividend.
4. On December 20, 2012, Eagle declared a dividend of $5,000 from pre-acquisition profits. The dividend was paid on February 10, 2013.
For the year ended December 31, 2013, the following information is available:
1. Kundi recognizes dividend revenue when the dividends are declared by Eagle.
2. The balance of the Investment in Eagle account was $119,380 at December 31, 2013.
3. On December 31, 2013, vehicles on hand at the acquisition date were sold for $6,500.
4. The company tax rate is 30%.
5. Kundi€™s share capital has always been $200,000.
6. Financial information for the year ended December 31, 2013, included the following:

Required
Prepare the consolidated statement of changes in equity of Kundi at December 31, 2013.

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Carrying amount 10,000 28,000 51,000 17,000 66,000 34,500 206,500 5,000 33,000 38,000 $168,500 Fair value $10,000 26,000 55,000 18,000 70,000 34,500 213,500 5,000 33,000 38,000 $175,500 Cash Accounts receivable Inventory Vehicles (cost $25,000) Plant (cost $100,000) Furniture and fixtures (cost $60,000) Dividend payable Provisions Identifiable assets and liabilities Income before tax Income tax expense Net income Retained earnings (1/1/13) Total available Dividend paid Dividend declared Kundi $42,000 16,800 25,200 55,600 80,800 15,000 10,000 25,000 $55,800 Eagle $36,000 14,400 21,600 76,800 98,400 8,000 16,000 24,000 74,400 Retained earnings (31/12/13)