Section C1 compulsory question (60 marks) Please do show all your workings as well as the consolidated statement of financial position on the paper provided On 1 January 2014 Parent ple acquired 100% of the equity shares in Subsid plc for 72,000 to gain control. The retained earnings of the Subsid plc at 1 January 2014 were 9,600. The fair value of the land in Subsid ple was 3,000 above book value. During the year Parent plc sold some of its inventory to Subsid pic for 8,400, which represented cost plus a mark-up of 40%. Some of these goods, 80%, are still in the inventory of Subsid plc at 31 December 2014. The statements of financial position of the two companies as at 31 December 2014 are shown below. Parent plc 50,000 72,000 Subsid plc 63,000 Non-Current Assets Investment in Subsid plc 9,600 Current Assets Inventories Parent Current Account Other Current Assets 3,800 19,200 9,600 32,400 Current Liabilities Subsid. Current Account Other Current Liabilities Net Current Assets 25.000 7,600 19,200 15.000 7,800 Net Assets 129.600 70.800 Equity Share Capital Retained Earnings 57,600 72.000 129.600 50,400 20,400 70.800 Required: Prepare a consolidated statement of financial position for Parent plc as at 31 December 2014