=+ The statement of financial position of REST on 1 January 1998 showed: €°000 €1 ordinary share capital Retained earnings 1,000 4,000 5,000 On 1 January 2003, WORK purchased 100% of the ordinary share capital of PLAY for €10,500,000. The statement of financial position of PLAY on that date showed: €'000 Property, plant and equipment Inventory 6,000 10,000 16,000 €’000 €1 ordinary share capital Retained earnings 1,625 14,375 16,000 The fair value of the net assets of PLAY was the same as their book value on the acquisi- tion date.