3 The following are the statements of financial position for Painting Berhad and Lukis Sdn Bhd for the year as at 31 December 2021: Painting (RM'000) Lukis (RM'000) Investment in Lukis: Ordinary shares 5% Preference shares Intangible asset-brand Non-current assets: Land & building Machinery Equipment Current assets: Inventory Trade receivables 3,900 300 80 8,700 3,400 2,500 1,010 900 650 3.010 760 3.220 680 6% Loan to Lukis 70 Bank 2,730 1,920 Total 25,330 8,500 Ordinary shares 15,000 4,500 5% Preference shares 3,000 600 6% Redeemable preference shares 200 Retained earnings 4,340 2,490 Trade payables 2,990 660 6% Loan from Painting 50 Total 25,330 8,500 Additional information: 1. Painting Bhd acquired 75% (3 million units) of the ordinary shares issued by Lukis Sdn Bhd on 1 January 2021 with cash payment of RM3.9 million. Retained earnings on this date was recorded as RM1.85 million. 2. On the acquisition date, equipment belonging to Lukis was estimated to have a lower fair value of RM20.000 with a useful life of 5 years. Fair value of land belonging to Painting and Lukis were estimated to increase by RM500,000 and RM200.000 respectively on 31 December 2021. Painting did not recognize the intangible asset (brand). Brand has yet to be impaired. None of these fair value changes have been recorded. 3. During the year, Painting sold a packing machine with the carrying value of RM300,000 for RM400,000 to Lukis. This machine is estimated to have a useful life of 5 years. 4. During the year, Lukis sold raw materials to Painting at cost plus 25%. Invoice value is RM220,000. Painting has used 100% of these materials in its finished goods of which 50% has been sold off to third parties. 5. Painting gave a loan to Lukis with the value of RM50,000 on 1 July 2021. On the 31 December 2021, Painting remitted another RM20,000 to Lukis as additional loan. The loan interests have yet to be accrued. 6. Painting declared 4% ordinary share dividends and full year preference shares dividends. Lukis declared 3 sen/unit ordinary shares dividends and half year dividends for both preference and redeemable preference shares. All dividends have not been accrued or recognized as intercompany income. 7. There was no new issuance of shares for Lukis Sdn Bhd since acquisition date. The group uses straight line method of depreciation and revaluation accounting to prepare its accounts. Required: Prepare the Group Statement of Financial Position for Painting group as at 31 December 2021. [27 marks]