1 and 2 are related to Lan Bhd. and Zone Bhd. Both questions should be answered together. Provided below are the Statement of Financial Position of two companies known as Lan Bhd and Zone Bhd. as at 31 December 2021. Lan Zone Bhd. Bhd. RM RM Non-current assets Land 6,600,000 5,700,000 Building 7,000,000 4,000,000 Plant and machinery 2,300,000 Investment Properties 1,500,000 Research and development 900,000 Investment in 2,460,000 ordinary 8,000,000 shares of Zone Bhd.at cost Total non-current assets 23,900,000 12,100,000 Current assets Inventories 3,000,000 2,000,000 Bank 1,880,000 1,500,000 Trade receivables 1,600,000 450,500 Total current assets 6,480,000 3,950,500 Total assets 30,380,000 16,050,500 Equity Ordinary shares 10,500,000 4,000,000 Revaluation reserve 6,680,000 Retained profit 10,010,000 4,500,000 Total equity 27,190,000 8,500,000 Current liability Trade payables 3,190,000 7,550,500 Total current liabilities 3,190,000 7,550,500 Total equity and liabilities 30,380.000 16,050,500 Additional information: (i) (ii) On 1 January 2020, Lan Bhd. acquired the ordinary shares of Zone Bhd. when the retained profit of Zone Bhd. is RM2,100,000. The fair value of the land of Zone Bhd. on 1 January 2020 was RM6,200,000. There were no additions or disposals of land during the current year. (iii) The fair value of the building of Zone Bhd. was RM1,500,000 more than its carrying amount on 1 January 2020. On the acquisition date, the remaining life of the building is 40 years. There were no additions or disposals of building during the current year. Zone Bhd did not adjust its financial statements to reflect the fair values. (iv) Zone Bhd. had also developed a homegrown brand name LOZ which was not recognised in its financial statements. The fair value of the brand on 1 January 2020 was RM680,000. The economic life of the brand was determined to be indefinite. (v) The fair value of non-controlling interest on acquisition date is RM5,000,000. (vi) Included in the receivables of Lan Bhd. dated 31 December 2021 is an amount owing to Zone Bhd. RM10,000. The amount has also been recorded by Zone Bhd. (vii) On 31 December 2021, goodwill was impaired by RM20,000. The company recognized partial goodwill. (viii) The fair value of land and building on 31 December 2020 was RM5,800,000 and RM6,100,000. (ix) The fair value of land and building on 31 December 2021 was RM7,800,000 and RM6,800,000. 1. Required to: Prepare the consolidation journal entries. (Note: Show all relevant workings) (25 marks)