On 1 April 20X6, H Ltd acquired a subsidiary, S Ltd. At that date, the shareholders’ equity of the S Ltd was as follows. RM Issued capital 100 000 Retained earnings 70 000 170 000 At the acquisition date, the identifiable net assets of S Ltd were recorded at fair value, except for land which had a fair value of $30 000 in excess of its recorded amount. Required: Assume that H Ltd acquired control of S Ltd by purchasing all of its share capital for RM220 000. Determine the amount of goodwill or gain on bargain purchase involved with this acquisition. question 2: a) P Co acquired 60% of S Co on 1 January 20X7. The following extract has been taken from the individual statements of profit or loss for the year ended 31 March 20X7: P Co S Co RM’000 RM’000 Cost of sales 710 480 P Co consistently made sales of RM20,000 per month to S Co throughout the year. At the year end, S Co held RM20,000 of this in inventory. P Co made a mark-up on cost of 25% on all sales to S Co. Required: What is P Co’s consolidated cost of sales for the year ended 31 March 20X7? b) P Co acquired 80% of S Co on 1 October 20X5. At this date, some of S Co’s inventory had a carrying amount of RM600,000 but a fair value of RM800,000. By 31 December 20X5, 70% of this inventory had been sold by S Co. The individual statements of financial position at 31 December 20X5 for both companies show the following: P Co S Co RM’000 RM’000 Inventories 3,250 1,940 Required: What will be the total inventories figure in the consolidated statement of financial position of P Co as at 31 December 20X5?