ANSWER ALL QUESTIONS. QUESTION 1 On 1 January 2021, Putra Ltd acquired 2,400,000 ordinary shares of Seri Ltd, for a cash consideration of $6,000,000 and gained control. On the acquisition date, the retained profits of Seri Ltd were $3,000,000. The statement of financial position of the two companies for the year ended 31 December 2021 were as follow"- Putra Ltd Seri Ltd $'000 $.000 ASSETS Property, plant and equipment 15,500 7,800 Investment in Seri Ltd 6,000 Inventories 5.000 3,000 Receivable from Seri Ltd 500 Other current assets 4.200 2,000 Total Assets 31,200 12,800 16,000 7,200 EQUITY AND LIABILITIES Ordinary share capital of $1 each Retained earnings Payable to Putra Ltd Other liabilities Total Equity and Liabilities 4,000 6,000 500 2,300 12,800 8,000 31,200 Additional information: a) Included in the property, plant and equipment of Seri Ltd is a freehold land recorded at cost of $1,000,000. At the acquisition date, this land was assessed to have fair value of $3,000,000. No adjustment has been made in the accounts to reflect the fair value. b) During the year 2021, Putra Ltd has provided inter-company advances of $500,000 to Seri Ltd. c) It is Putra Ltd's policy to measure non-controlling interest equal to its proportionate share of net assets of the subsidiary. REQUIRED: (a) Define and compute "Goodwill on Consolidation. (6 marks) (b) Define and compute "Non-Controlling Interest. (4 marks) (c) Explain why intra-group transactions and balances are eliminated in consolidation. (3 marks) (d) Prepare the Consolidated Statement of Financial Position for Putra Ltd and its subsidiary as at 31 December 2021. (Show all workings) (12 marks)