On January 1, 2009, Plexon acquired 75% of the shares of Jayden for $40,000. The following balances appeared in the records of Jayden at this date:

Share capital......... $20,000

Retained earnings...... 12,000

At January 1, 2009, all the identifiable assets and liabilities of Jayden were recorded at fair value except for the following:

The machinery had a remaining useful life of five years. The machinery was sold by Jayden on July 1, 2013, for $4,000. By December 31, 2009, accounts receivable had all been collected and inventory sold.
For the year ended December 31, 2013, the following information is available:
1. Intragroup sales were: Jayden to Plexon€”$40,000. The markup on cost of all sales was 25%.
2. At December 31, 2013, inventory of Plexon included $2,000 of items acquired from Jayden.
3. At December 31, 2012, inventory of Plexon included goods of $1,000 resulting from a sale on September 1, 2012, by Jayden at a before-tax profit of $200. These items were sold by Plexon on February 1, 2013.
4. On July 1, 2013, Jayden sold an item of plant to Plexon for $2,000 at a before-tax profit of $800. For plant assets, Jayden applies a 10% p.a. straight-line depreciation rate, and Plexon uses a 2.5% p.a. straight-line method.
5. The current tax rate is 30%.
6. Financial information for the year ended December 31, 2013, includes the following:

Required
(a) Prepare the consolidated statement of comprehensive income of Plexon for the year ending December 31, 2013, using the partial goodwill method.
(b) Prepare the consolidated statement of changes in equity of Plexon for the year ending December 31,
2013. Plexon€™s share capital has always been $100,000.
(c) What differences would exist in parts (a) or (b) above, if the full goodwill method were used? The fair value of the non-controlling interest at January 1, 2011, was $12,900.

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Fair value $40,000 20,000 18,000 Carrying amount Machinery (cost $36,000) Inventory Receivables $30,000 16,000 20,000 Plexon $ 88,000 12,000 Jayden $52,000 Sales revenue Other revenue Total revenue Cost of sales 8,000 60,000 26,000 58,000 Other expenses: 2,000 6,000 34,000 26,000 Selling and administrative (including depreciation) 4,000 8,000 70,000 Financial Gross profit Dividend revenue Income before tax Income tax expense Net income Retained earnings at January 1, 2013 30 3,000 13,200 19,800 40,000 59,800 10,400 15,600 20,000 35,600 9,000 4,000 13,000 $22,600 Interim dividend paid Final dividend declared 80 4,000 80 Retained earnings at December 31, 2013 48,000