Rentech owns all the share capital of Inced. The following intragroup transactions took place.

1. During the year ending December 31, 2013, Inced sold $50,000 worth of inventory to Rentech. Inced recorded a $10,000 profit before tax on these transactions. At December 31, 2013, Rentech has one quarter of these goods still on hand.

2. Inced sold land to Rentech for $100,000. This had originally cost Inced $82,000. The transaction took place on July 1, 2012.

3. During 2013, Rentech sold inventory costing $12,000 to Inced for $18,000. One third of this was sold to Olivia for $9,500.

4. On June 30, 2012, Inced sold inventory costing $6,000 to Rentech at a transfer price of $8,000. Half was sold in January 2013 to Anon at a loss of $200.

5. On December 15, 2013, Rentech declared a dividend of $10,000. On the same day, Inced declared a $5,000 dividend.
6. On June 30, 2013, Rentech issued 1,000 5% bonds of $100 at nominal value. Inced acquired 400 of these. Interest is payable half-yearly on December 31 and June 30.

7. During 2012, Rentech sold inventory to Inced for $10,000, recording a before-tax profit of $2,000. Half this inventory was unsold by Inced at December 31, 2013.

Required

Prepare the adjustments for the consolidated financial statement at December 31, 2013. Assume an income tax rate of 30% and that all income on sale of assets is taxable and expenses are deductible.