Consolidation

The following financial statements of Tina Ltd and its subsidiary Jane Ltd have been extracted from their financial records at 30 June 2020.
Tina Ltd Jane Ltd
Reconciliation of operating profit and closing retained earnings
Sales revenue 671400 540000
Cost of goods sold (464000) (238000)
Gross profit 207400 302000
Dividends received from Jane Ltd 93000 –
Management fee revenue 26500
Gain on sale of plant 40000 35000
Expenses
Administrative expenses (30800) (38700)
Depreciation (29500) (56800)
Management fee expense – (26500)
Other expenses (101100) (72000)
Profit before tax 205500 143000
Tax expense (61500) (42200)
Profit for the year 144000 100800
Retained earnings 30 June 2019 319400 239200
463400 340000
Dividends paid (137400) (93000)
Retained earnings 30 June 2020 326000 247000
Tina Ltd Jane Ltd
Statement of financial position
Shareholders’ equity
Retained earnings 314683 247000
Share capital 350000 200000
Current liabilities
Accounts payable 54700 46300
Tax payable 41300 25000
Non-current liabilities
Loans 173500 116000
945500 634300
Current assets
Accounts receivable 49400 62300
Inventory 92000 29000
Non-current assets
Land and Buildings 224000 326000
Plant – at cost 299850 355800
Accumulated depreciation (85705) (138800)
Investment in Jane Ltd 356000 –
945500 634300

Other information
a) Tina Ltd acquired its 100 per cent interest in Jane Ltd on 1 July 2015, that is, five years earlier. At that date the capital and reserves of Jane Ltd were:
Share capital $200,000
Retained earnings 180,000
$380,000
At the date of acquisition all assets were considered to be fairly valued.
b) During the year Tina Ltd made total sales to Jane Ltd of $60,000.
c) The closing inventory in Tina Ltd includes inventory acquired from Jane Ltd at a cost of $33,000. This cost Jane Ltd $28,000 to produce.
d) Jane Ltd sold $50,000 in inventory to Tina Ltd.
e) The closing inventory of Jane Ltd includes inventory acquired from Tina Ltd at a cost of $12,000. This cost Tina Ltd $10,000 to produce.
f) The opening inventory in Tina Ltd as at 1 July 2019 included inventory acquired from Jane Ltd for $40,000 that cost Jane Ltd $30,000 to produce.
g) On 1 July 2019 Jane Ltd sold an item of plant to Tina Ltd for $116,000 when its carrying value in Jane Ltd’s accounts was $81,000 (cost $135,000, accumulated depreciation $54,000). This plant is assessed as having a remaining useful life of six years. The group has a policy of measuring its property, plant and equipment using the cost model. The group uses the straight-line method of depreciation.
h) Jane Ltd paid $26,500 in management fees to Tina Ltd
i) The tax rate is 30 per cent.