Alpha co purchased 1,400,000 ordinary shares in beta co on January 1, 2010 for k1,450,000 when the general reserves of beta stood at k400,000 and there were no retained earnings The statement of financial position of the two companies as at 31 December 2014 set out below. Non-current Assets Property, plant and equipment Investment in beta at cost Current assents Inventories Receivables Cash Alpha Beta K.000 K,000 8868 1787 1450 10318 1767 1963 1425 1462 1307 25 16 3470 2748 13788 4535 Total assets Equity and liablities. Equity share capital (k 50 ordinary shares) 5500 1000 general reserves 1200 800 Retained earnings 485 100 Total equity Non-current liability 7105 1900 Borrowing 10% 4000 Borrowing 15% 500 Total non-current liability 4000 500 Current liability Bank overdraft Trade payables Taxation Total current liability Total liabilities Total equity and liabilities 1176 840 L 887 1077 540 218 2603 2135 6603 2635 13788 4535 At the end of the reporting period the account of Alpha with Beta was agreed at k23,000 owed by Bleta. This account is in cluded in the appropriate receivable and trade payable balances shown above. There has been no impairment of goodwill since the date of acquisition. It is the group's policy to value ther non controlling interest at its proportionate share of the f air value of the subsidiary's net assets Required CA acquisition the fair value of property, plant and equipment was more by k400,000 and had an e stimated remaining economic useful life of 10 years. Alpha had sent a cheque of k5,000 to Beta, which was not received at reporting date.