On 1 July 2021 Anderson Ltd acquires 70 per cent of the equity capital of Thruster Ltd at a cost of $4 million.

At the date of acquisition all assets of Thruster Ltd are fairly stated, and the total shareholders’ funds of Thruster Ltd are $4.4 million, consisting of:

As at 30 June 2023 (two years after the date of acquisition) the financial statements of the two companies are as follows:

Additional information

• The management of Anderson Ltd measures any non-controlling interest in Thruster Ltd at fair value. During the 2023 financial year, Thruster Ltd sells $45 000 of inventory to Anderson Ltd. At year end, Anderson Ltd has sold all of this inventory. The tax rate is 30 percent.

REQUIRED

Prepare the consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income, and consolidated statement of changes in equity for Anderson Ltd and its controlled entity.

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Share capital Retained earnings $3 000 000 $1 400 000 $4 400 000