Financial information at December 31, 2013, of Spider and its subsidiary company, Hudson, includes the following.

At January 1, 2010, the date Spider acquired its 80% shareholding in Hudson, all of Hudson€™s identifiable assets and liabilities were at fair value except for the following assets:

The plant has an expected life of 10 years, with benefits being received evenly over that period. Differences between carrying amounts and fair values are adjusted on consolidation. The land on hand at January 1, 2010, was sold on November 1, 2010, for $40,000.
Spider uses the full goodwill method. The fair value of the non-controlling interest at January 1, 2010, was $31,500.
Additional information:
1. At the date of acquisition of 80% of its issued shares by Spider, the equity of Hudson was:
Share capital (100,000 shares) .......... $100,000
Retained earnings .............. 40,000
2. Inventory on hand of Hudson at January 1, 2013, included a quantity priced at $10,000 that had been sold to Hudson by its parent. This inventory had cost Spider $7,500. It was all sold by Hudson during the year.
3. In Spider€™s inventory at December 31, 2013, were various items sold to it by Hudson at $5,000 above cost.
4. During the year, intragroup sales by Hudson to Spider were $60,000.
5. It was also learned that Hudson had sold to Spider an item for $20,000 on July 1, 2012. Spider had treated this item as an addition to its plant and machinery. The item was put into service as soon as received by Spider and depreciation charged straight line over five years. The item had been fully imported by Hudson at a landed cost of $15,000 on the day of the sale.
6. Management and consulting fees derived by Spider were all from Hudson and represented charges made for administration $2,200 and technical services $2,800. The latter were charged by Hudson to manufacturing expenses.
7. All bonds issued by Hudson are held by Spider.
8. Cumulative other comprehensive income relates to movements in the fair values of the financial assets. The balance of this account at January 1, 2013, was $10,000 (Spider) and $8,000 (Hudson).
9. The tax rate is 40%.
Required
Prepare the consolidated financial statements for Spider and its subsidiary, Hudson, for the year ended December 31, 2013.

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Spider Hudson $220,000 Sales revenue Other revenue: 314,500 Bond interest Management and consulting fees Dividend from Hudson 5,000 6,500 12,000 338,000 130,000 90,000 15,000 15,000 11,000 14,000 275,000 63,000 25,000 38,000 50,000 88,000 13,000 10,000 23,000 65,000 63,000 300,000 200,000 25,000 10,000 220,000 85,000 60,000 15,000 8,000 5,000 12,000 185,000 35,000 17,000 18,000 45,000 63,000 10,000 5,000 15,000 48,000 20,000 100,000 100,000 17,000 5,000 7,000 12,000 $309,000 Total revenues Cost of sales Manufacturing expenses Depreciation on plant Administrative Financial Other expenses Total expenses Income before tax Income tax expense Net income Retained earnings (1/1/13) Interim dividend paid Final dividend declared Retained earnings (31/12/13) Cumulative other comprehensive income Share capital Debentures Current tax liability Dividend payable Deferred tax liability Other liabilities 90,000 753,000 Spider Hudson $50,000 100,000 131,600 55,000 36,000 89,500 85,900 201,000 4,000 $753,000 60,000 Financial assets Bonds in Hudson Investment in Hudson Plant -net Other depreciable assets -net Inventory Deferred tax asset Land Dividend receivable 47,000 30,000 85,000 30,000 57,000 309,000 Carrying amount $50,000 30,000 Fair value Plant (cost $75,000) Land $55,000 38,000