1 (25 Marks) Houbi Berhad acquired 180,000 ordinary shares, 90,000 preference shares and RM60,000 10 percent debentures of Binance Berhad on 1 January 2015 when the retained profit of Binance Berhad was RM30,000. The issued share capital of Binance Berhad comprised 300,000 ordinary shares and 300,000 preference shares. Given below are the statements of profit or loss of Houbi Berhad and Binance Berhad for the year ended 31 December 2020. Houbi Binance Turnover RM 1,275,000 RM 825,000 Cost of sales (450,000) (300,000) Gross profit 825,000 525,000 Expenses (225,000) (135,000) Operating profit before tax 600,000 390,000 Dividends from quoted investments 30,000 22,500 Debenture interest (15,000) Debenture interest from Binance Berhad 6,000 Dividends from Binance Berhad Ordinary 36,000 4,725 676,725 397,500 (225,000) (150,000) 451,725 247,500 Preference Taxation Profit for the year Additional information: a) The retained profit on 1 January 2020 for Houbi Berhad and Binance Berhad was RM165,000 and RM75,000 respectively. b) During 2020, Houbi Berhad paid dividends to ordinary shareholders RM90,000 while, Binance Berhad paid RM60,000. c) Binance Berhad paid preference dividend for half-year only amounting to RM15,750. d) On the acquisition date, the fair value of Binance Berhad's plant was RM150,000 more than its carrying amount. The additional depreciation based on the fair value is RM15,000 per annum. e) Sales of Houbi Berhad includes sales to Binance Berhad of RM200,000. Houbi Berhad sells goods to Binance Berhad at cost plus 25 percent and RM40,000 of the goods purchased from Houbi Berhad still remain as closing inventory of Binance Berhad. f) The group only recognizes the parent's share of goodwill which was RM30,000. As at 31 December 2019, 50 percent of goodwill was impaired and there is no impairment in year 2020. Required: i. Prepare the consolidated statement of profit or loss of Houbi Berhad and Binance Berhad for the year ended 31 December 2020. [17 marks] ii. Calculate the group retained profit at 1 January 2020 and 31 December 2020. [8 marks]