A&C purchased 80% of the voting capital of Steve Co on 1 July 20x8. The consideration consider of cash of $12 per share and the issue of one new share in A&C for every four acquired in Steve. A&C's shares have a fair value of $3.5 and a nominal value of $1.00. The fair value of the non controlling interest at the acquisition date was $25,000 The statements of financial position as at 1 July 20X8 were follows: A&C Steve $'000 $'000 PPE 200 125 65 55 Inventory 79 48 Receivable 18 2 Cash 362 230 50 10 25 8 Share capital ($1 shares) Share premium Retained earning 106 75 108 93 62 52 Payables 120 85 Bank loan 362 230 The carrying amounts of all assets at liabilities were equal to their fair value with the expection of land included in the property, plant and equipment balance which had a carrying value of $50,000 and a fair value of $75,000 at the acquisition date. Included in the receivables of A&C and payables of Steve is $20,000 from intercompany sales and purchases. The inventory of Steve includes $10,000 of goods purchased from A&C at mark up 25% Requirement 1: Complete the calculation for goodwill on acquisition $ Consideration Cash Share Non-controlling interest Net assets acquisition Share capital Share premium Datained earnings Goodwill Requirement 2: Using the above information as well as the information previously provided, prepare the following extracts from the consolidated statement of financial position for A&C Co group as at 31 December 20X8: S'000 PPE Inventory Receivable Payables Requirement 3: Show below are the individual statements of profit or loss for A&C and Steve for the year ended 31 December 20X8: A&C Steve S'000 S'000 Revenue 175 128 Less cost of sales 113 84 Gross profit 62 44 Less expense 26 16 Profit before tax 36 28 Less tax 18 15 Profit for the year 18 13 In the period since acquisition (1 July 20x8) A&C sold goods to Steve for $40,000. The selling price represents cost plus 25%. $10,000 of these goods are included in the inventory of Steve. Using the information above prepare the following extracts from the consolidated statement of profit and loss of A&C Co group for the year ended 31 December 20x8