[20] QUESTION FIVE The following are the trial balance of Sam Ltd and its subsidiary Pam Ltd for the year ended 31 December 2021: Sam Ltd Pam Ltd R R Issued capital - Ordinary shares of R1 each (200 000) (100 000) Retained earnings - 1 January 2021 (120 000) (80 000) Profit before tax (80 000) (60 000) Investment in Pam Ltd - 80 000 ordinary shares of R1 each at fair value 80 000 Property, plant and equipment 200 000 200 000 Inventories 50 000 30 000 Trade and other receivables 70 000 50 000 Trade and other payables (30 000) (60 000) Taxation for the year 30 000 20 000 Additional information: 1. Sam Ltd acquired its interest in Pam Ltd at the time of incorporation of Pam Ltd. 2. Sam Ltd purchased all its inventories from Pam Ltd at cost price plus 25%. The inventories on Sam Ltd's books at 1 January 2021 amounted to R40 000. 3. Total sales of Pam Ltd to Sam Ltd amounted to R100 000 during 2021. 4. Assume that the cost price or carrying amount equals the current fair value. Required: Draft the consolidated annual financial statements of Sam Ltd and its subsidiary for the year ended 31 December 2021. Show all workings