Pure Company purchased 70% of the ordinary shares of Gold Company on January 1, Year 6, for $483,000 when the latter company€™s accumulated depreciation, ordinary shares and retained earnings were $75,000, $500,000 and $40,000, respectively. Non-controlling interest was valued at $195,000 by an independent business valuator at the date of acquisition. On this date, an appraisal of the assets of
Gold disclosed the following differences:

The plant and equipment had an estimated life of 20 years on this date.
The statements of financial position of Pure and Gold, prepared on
December 31, Year 11, follow:

Additional Information
€¢ Goodwill impairment tests have resulted in impairment losses totalling $18,000.
€¢ On January 1, Year 1, Gold issued $500,000 of 8½% bonds at 90, maturing in 20 years (on December 31, Year 20).
€¢ On January 1, Year 11, Pure acquired $200,000 of Gold€™s bonds on the open market at a cost of $230,000.
€¢ On July 1, Year 8, Gold sold a patent to Pure for $63,000. The patent had a carrying amount on Gold€™s books of $42,000 on this date and an estimated remaining life of seven years.
€¢ Pure uses tax allocation (40% rate) and allocates bond gains between affiliates when it consolidates Gold.
€¢ Pure uses the equity method to account for its investment.
Required:
Prepare a consolidated statement of financial position as at December 31, Year 11.

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Carrying amount $150,000 700,000 Fair value Land Plant and equipment Inventory $200,000 770,000 108,000 Pure Gold Land Plant and equipment Less accumulated depreciation Patent (net of amortization) Investment in Gold Co. shares (equity method) Investment in Gold Co. bonds Inventory Accounts receivable Cash $100,000 625,000 (183,000) 31,500 546,670 227,000 225,000 212,150 41,670 $1,825,990 $ 150,000 940,000 (220,000) 180,000 170,000 57,500 $1,277,500 750,000 1,019,960 Ordinary shares Retained earnings Bonds payable (due Year 20) Accounts payable 500,000 200,000 477,500 100,000 $1,277,500 56,030 $1,825,990