The financial statements of P Co and its subsidiaries and associate are as follows:

Additional information

1. The fair values of identifiable net assets of Y Co were close to their book values on 1 July 20x0 and 1 January 20x1.
The estimated useful life of intangible assets of Z Co was 5 years, but the recoverable amount on 31 December 20x3 was assessed to be $100,000.
2. The provision for claims of X Co was settled in full during 20x1 for $170,000.
3. On 1 July 20x3, Z provided new electrical equipment to P Co at the invoiced price of $120,000. The original cost was $200,000 and the net book value was $60,000. The estimated useful life of the equipment was 3 years. Z Co recognized a profit of $$60,000 on the sale. Due to operational changes, the estimated recoverable amount of the equipment as at 31 December 20x3 was $60,000.
4. On 1 October 20x2, Y sold inventory to P Co at the transfer price of $130,000. The original cost and carrying amount of the inventory was $70,000. Percentage resold to third parties were as follows:

5. Apply a tax rate of 20% on all appropriate adjustments. Recognize tax effects on fair value adjustments. Companies recognize impairment losses, if any, at the financial year-end.

Requirement

Prepare the consolidated financial statements for the year ended 31 December 20x3 using the end result approach through workings (i.e., analytically derive the balances without having to formulate the consolidation and equity accounting entries and worksheets).

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Profit before tax... Tax....... Profit after tax Income to NCI Dividends declared..... Income Statement for year ended 31 December 20x3 P Co X Co Z Co Profit retained..... Retained earnings, 1 Jan 20x3... Retained earnings, 31 Dec 20x3... Y Co 6,273,000 2,840,000 1,071,000 550,000 (1,254,600) (568,000) (214,200) (110,000) 5,018,400 2,272,000 856,800 440,000 (320,000) (240,000) (60,000) (65,000) 4,698,400 2,032,000 796,800 375,000 4,530,000 1,280,000 474,000 900,000 9,228,400 3,312,000 1,270,800 1,275,000 Consolidated