The nancial statements of JEZ Lte. and its subsidiary, Fornax Lte., at December 31, 2013, contained the

The financial statements of JEZ Ltée. and its subsidiary, Fornax Ltée., at December 31, 2013, contained the following information:

JEZ had acquired all the share capital of Fornax on January 1, 2010, for $15,000 when the equity of Fornax consisted of:
Share capital€”10,000 shares.......... $10,000
Retained earnings............... 3,500
At the acquisition date by JEZ, Fornax€™s non-monetary assets consisted of:

The plant had a further six-year life. All the inventory was sold by December 31, 2010. The land was sold in January 2013 for $6,000.
The tax rate is 40%.
Required
Prepare the consolidated financial statements for the year ended December 31, 2013.

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JEZ Fornax $ 3,200 1,300 1,900 1,500 3,400 500 2,900 25,000 14,000 $41,900 $ 8,600 12,000 3,000 3,000 300 15,000 $41,900 Profit before tax Income tax expense Profit for the year Retained earnings (1/1/13) 1,800 240 1,560 2,100 3,660 Dividend paid Retained earnings (31/12113) Share capital Liabilities 3,660 10,000 4,800 $18,460 Land Plant Financial assets Inventory $5,100 7,000 2,000 4.000 360 Investment in Fornax Ltée $18,460 Carrying amount Fair value Land Plant (cost $6,000) Inventory $4,000 5,500 3,000 $6,000 6,700 4,000