Phi acquired an 80% ownership interest in Alpha on 1 January 20x1 for $1,000,000. At the date of acquisition, Alpha showed the following balances under shareholders’ equity:

At the date of acquisition, excess of fair value of Alpha’s inventory over book value was $100,000. The inventory was still unsold as at 31 December 20x1. The fair value of non-controlling interests as at 1 January 20x1 was $250,000. The separate financial statements for Phi and Alpha for the year ended 31 December 20x1 are shown below. Ignore tax effects.

Required:
Complete the consolidated financial statements for Phi and Alpha for the year ended 31 December 20x1 under the parent and entity theories of consolidation.

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Share capital... Retained earnings.. Shareholders' equity.... $500,000 200,000 $700,000