On January 1, 2009, Zaldivar acquired 75% of the share capital of Burran at a cost of $27,600. At this date, the capital of Burran consisted of 30,000 common shares, and retained earnings were $6,000.

At January 1, 2009, Burran had not recorded any goodwill, and all of its identifiable net assets were recorded at fair value except for inventory, which had a fair value of $10,000 and a carrying value of $14,000, and plant, which had a fair value of $20,000 and a carrying value of $15,000. The plant has a remaining life of four years. The inventory is recorded on a FIFO (first-in, first-out) basis. Zaldivar uses the partial goodwill method. The fair value of the non-controlling interest at January 1, 2009, was $9,000.

The trial balances of the two companies as at December 31, 2013, are as shown below.

Additional information:
1. Intragroup sales of inventory for the year ended December 31, 2013, from Burran to Zaldivar were $19,000.
2. Unrealized profits on inventory held at January 1, 2013: inventory held by Zaldivar purchased from Burran at a profit before tax of $800.
3. Unrealized profits on inventory held at December 31, 2013: inventory held by Zaldivar purchased from Burran at a profit before tax of $1,200.
4. The cumulative other comprehensive income account relates to financial assets held by Burran. The balance of this account at January 1, 2013, was $4,000.
5. The tax rate applicable is 30%.
Required
Prepare the consolidated financial statements for the year ended December 31, 2013.

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Trial Balances as at December 31, 2013 Zaldivar Burran $40,000 19,000 30,000 14,500 5,000 2,900 Share capital Retained earnings (January 1, 2013) Cumulative other comprehensive income Income tax payable Plant net Investment in Burran 10% bonds in Burran Inventory Cash Financial assets Deferred tax asset Sales revenue Cost of sales Selling expenses Other expenses Financial expenses Income tax expense Interest received from bonds Dividend revenue Dividend paid 10% bonds 8,500 $13,000 27,600 2,500 12,000 14,050 $ 29,500 15,500 500 11,000 5,000 2,000 50,000 80,000 34,000 4,000 1,500 1,500 5,000 58,500 6,000 1,500 2,000 5,500 250 1,800 2,400 2,400 $119,550 5,000 $137,400 $119,550 $137,400