Ctrl lage On 1 July 2015, Ausra purchased 75% of Danute by way of a share exchange of two new shares in Ausra for every three purchased in Danute plus an immediate cash payment of $11,160,000. Ausra's share price at the acquisition date was $4.70. Only the cash element of the consideration has been recorded. On the same date, Ausra purchased $5,000,000 of Danute's 10% loan notes at par. The summarised financial statements of both companies are as follows: Statement of Comprehensive Income for the year ended 31 December 2015 REX Ausra Danute 000 S 000 $ Revenue 0000 000 Cost of sales (84,000) Gross profit Operating expenses Profit from operations 24,100 Other income 009 Finance costs (1,200) Profit before tax 24,400 6,400 Income tax expense (1,200) Profit for the year 18,400 5,200 Statements of Financial Position at 31 December 2015 Ausra Danute 000 S 000 S Non-current assets: 38,640 Property, plant and equipment 16,280 Investments 54,920 000'91 Current assets 11,240 6,450 Inventory 13,600 7,355 Receivables 5,160 2,195 Bank 84,920 Total Assets Equity and liabilities Ordinary shares of $1 each 17,720 Retained earnings 7,200 Revaluation reserve 64,920 12,800 Non-current liabilities 10,000 10% loan notes 20,000 9,200 Current Liabilities 84,920 Total Equity and Liabilities The following information is relevant: 1)The fair value of Danute's net assets differed from its carrying values at 1 July 2015. Plant was $8 million in excess of its net book value. Plant had 4 years remaining at the date of acquisition. The group depreciation policy is to charge depreciation on a proportionate basis and should be included in cost of sales. No adjustment was made for this in Danute's financial statements. 2)Ausrahas a policy of revaluing land and buildings to fair value (as allowed per IAS 16) at each reporting date. Danute accounts for its non-current assets at historical cost. At the acquisition date, Danute's land and buildings had a fair value of $2 million greater than their book value and at 31 December 2015 this had increased by a further $400,000 (ignore any additional depreciation). 3)On 1 July 2015, Ausratransferred an item of machinery to Danute. The machine had originally cost $1.2 million on 1 July 2010, and it was etransferred to Danute for $1 million. Machines have a useful life of ten years. The Useful Economic Life has not changed as a result of the transfer. 4)During the year Ausrasold goods to Danute at a transfer price of $250,000. All of the goods were sold on outside the group by the year-end. The current accounts of Ausra and Danute were reconciled at the year end with Danute owing $50,000. 5)Ausra's policy is to value the non-controlling interest at fair value at the date of acquisition. The fair value of the non-controlling interests at the date of acquisition is $7.3 million. 6)An impairment test carried out on 31 December 2015 concluded that consolidated goodwill was impaired by $780,000. Required:Prepare a consolidated Statement of Comprehensive Income for Ausra for the year to 31 December 2015.