Financial Accounting 2- ACCA

I am spending a lot of time on this problem. Please help me with a solution so that I can better understand this problem !

On 1 October 20X7, Pedantic acquired 80% of the equity share capital of Sophistic in a share
exchange of two shares in Pedantic for three shares in Sophistic. The issue of shares has not yet
been recorded by Pedantic. At the date of acquisition shares in Pedantic had a market value of $5 each. Below are the summarised draft financial statements of both entities.
Statement of profit or loss for the year ended 30 September 20X8

Statement of profit or loss for the year ended 30 September
20X8
Pedantic Sophistic
$000 $000
Revenue 85,000 42,000
Cost of sales (63,000) (32,000)
–––––– –––––––
Gross profit 22,000 10,000
Distribution costs (4,000) (3,500)
Administrative expenses (8,000) (1,000)
Finance costs (600) (500)
––––––– –––––––
Profit before tax 9,400 5,000
Income tax expense (2,162) (1,000)
––––––– –––––––
Profit for the year 7,238 4,000

Statements of financial position as at 30 September 20X8
Pedantic Sophistic
$000 $000
Assets
Non-current assets
Property, plant & equipment 40,600 14,600
Current Assets 16,000 7,100
––––––– –––––––
Total Assets 56,600 21,700

Equity & liabilities
Equity shares of $1 each 10,000 6,000
Retained Earnings 35,400 7,000
––––––– –––––––
45,400 13,000

Non-current liabilities
10% Loan Notes 3,000 4,000
Current liabilities 8,200 4,700
––––––– –––––––
Total equity & liabilities 56,600 21,700
The following information is relevant:
(i) At the date of acquisition, the fair values of Sophistic’s net assets were equal to their
carrying amounts.
(ii) Sales from Sophistic to Pedantic in the post?acquisition period were $6 million.
Sophistic made a mark up on cost of 25% on these sales. One quarter of these goods
remained in the inventory of Pedantic at the year?end.
(iii) Other than where indicated, statement of profit or loss items are deemed to accrue
evenly on a time basis.
(iv) At 30 September 20X8, Sophistic had a receivable due from Pedantic of $1 million.
This agreed with the amount payable to Sophistic in Pedantic’s financial statements.
(v) Pedantic has a policy of accounting for any non?controlling interest at fair value. The fair value
of the non?controlling interest at the acquisition date was $2.8 million.
Consolidated goodwill was not impaired at 30 September 20X8.

Required:
1. What figure for goodwill on consolidation should appear in the consolidated statement of financial position of the group at 30 September 20X8?
2. What figure for non-controlling interest should appear in the consolidated statement of financial position of the Pedantic group at 30 September 20X8?
3. What should the figure for retained earnings be in the group’s consolidated statement of financial position at 30 September 20X8?
4. What profit is attributable to the parent company in the consolidated statement of profit or loss of the Group for the year to 30 September 20X8?
5. Prepare the consolidated statement of profit or loss for Pedantic for the year ended 30 September 20X8.
6. Prepare the consolidated statement of financial position for Pedantic as at
30 September 20X8.