2. On 1 January 2014, Omar Bhd acquired 80% of the issued ordinary share capital of Amar Bhd of 5,000,000 shares of RM 1 each. On that date, the reserves of Amar Bhd consisted of share premium of RM 2,000,000 and retained profits of RM 1,000,000. Omar Bhd trades with Amar Bhd and during the current year, Omar Bhd sold goods for RM 500,000 to Amar Bhd. Omar Bhd sold to Amar Bhd at cost plus 25%. RM 100,000 of these goods remains unsold in Amar Bhd. The opening inventory of Amar Bhd includes goods bought from Omar Bhd of RM 25,000. Amar Bhd paid a net dividend of RM 400,000 which was recognised by Omar Bhd. Omar Bhd charges Amar Bhd for consultancy services of RM 120,000 per annum. The amount paid by Amar Bhd is included in its operating expenses. Given below are the income statements of Omar Bhd and of its subsidiary, Amar Bhd for the year ended 31" December 2020: Omar Bhd Amar Bhd Sales 17,000,000 13,000,000 Cost of sales (8,000,000) (6,000,000) Gross profit 9,000,000 7,000,000 Operating expenses (2,000,000) (2,000,000) 7,000,000 5,000,000 Page 13 of 16 BDC 311 FINANCIAL ACCOUNTING SISEM. JAN 2021 Consultancy services to Amar Bhd Dividend from Amar Bhd 120,000 320,000 7,440,000 3.800.000 3,640,000 Taxation Profit after tax 5,000,000 2,400,000 2,600,000 Retained profit 1" January 2020 15,600,000 2,400,000 Ordinary dividend paid in 2020 1,000,000 400,000 You are required to: a. Prepare Consolidated Statement of Comprehensive Income of Omar Bhd and its subsidiary, Amar Bhd. (14) b. Extract of the Statement of Changes in Equity for the year ended 31 December 2020. (6) (Total: 20)