1) On 31 December 2018, its balance sheet date, Groot Ltd had issued share capital of 600,000 ordinary RM1 shares and retained profits of RM340,000. Four years later, the share capital is unchanged but the retained profits have risen to RM420,000. Pai Ltd purchased 150,000 shares in Groot Ltd on 31 December 2018 for RM260,000. On 31 December 2022, it paid RM650,000 for another 300,000 shares.

a. When should the goodwill recognized?

b. Calculate the figure of goodwill to be shown in the consolidated balance sheet.