Answers are to comply with International Financial Reporting Standards (IFRS's). Show all calculations clearly. Additional information: 1. Costa Ltd acquired its interest in Jumbo Ltd at 1 July 20.18. at that date, Jumbo Ltd's retained earnings amounted to R55 000. Costa Ltd paid R204 000, R75 0 of which was paid for goodwill. The balance was attributable to the revaluation Jumbo Ltd's property. The carrying amount of the assets and liabilities were eq to the fair value thereof. At the date of acquisition there was no arrear preferenc dividend. Each share carries one vote. 2. Costa Ltd has bought all its inventories from Jumbo Ltd since 1 July 20.21. jumh Ltd made a profit of 25% on the cost price of inventories sold to Costa Ltd. 3. Jumbo Ltd paid no preference dividends for the period 1 July 20.18 to 30 June 20.20. on 30 June 20.21 Jumbo Ltd paid a preference dividend of R22 500. 4. On 29 June 20.22 Jumbo Ltd sent inventories to the value of R20 000 to Costa Ltd, Costa Ltd only received the inventories on 3 July 20.22. 5. On 2 January 20.21, Costa Ltd sold a machine to Jumbo Ltd at a profit of R40 000. It is group policy to provide for depreciation at 25% per annum according the reducing balance method. Ignore all forms of taxes. Question 1 (50 marks) Costa Ltd is a company with a 30 June year end. The following information relates to Costa Ltd and its subsidiary Jumbo for the year ended 30 June 20.22. Page 2 of 9