(a) Frank Berhad (Frank) acquired a 60% holding in Rush Berhad (Rush) three years ago when Rush's retained earnings balance stood at RM32,000. Both businesses have been very successful since the acquisition and their respective statements of profit or loss for the year ended 30 June 2020 are given below. Rush RM 386,000 (185,200 200.800 Statement of Profit or Loss for the year ended 30 June 2020 Frank RM Revenue 806.800 Cost of sales (402,800 Gross Profit 404,000 Other Operating Income 40,000 Dividend from Rush Berhad 30.000 474.000 Distribution cost (32,000 Administrative expenses (48,500) Profit before taxation 393,500 Income tax expenses (123,500) PROFIT FOR THE YEAR 270,000 200,800 (29,200) (35,600) 136,000 (44,000 92,000 STATEMENT OF CHANGES IN EQUITY (EXTRACT) Balance at 1 July 2019 Dividend Profit for the year Balance at 30 June 2020 Frank Retained eamings RM 326,000 (80,000) 270.000 516,000 Rush Retained earnings RM 122,000 (50,000) 92.000 164,000 The following information is relevant: 1. During the year Rush sold some goods to Frank for RM80,000, including 25% mark-up. Half of these items were still in inventories at the year end. 2. On 1 September 2019, Frank transferred a machine to Rush for an amount of RM60,000. The net book value on this date was RM40,000 and it had a remaining useful life of five years. Depreciation was provided on a straight-line basis over the remaining useful life, charging a full year's depreciation in the year of purchase. Required: Produce the consolidated statement of profit or loss of Frank Berhad and its subsidiary for the year ended 30 June 2020, and an extract from the statement of changes in equity, showing retained earnings. (15 marks)