Any help would be appreciated!
Basil Ltd Set out below are the draft statements of financial position of Basil Ltd, Dave Ltd and Molly Ltd as at 21 Marrh 207 Additional information: (1) Several years ago Basil Ltd purchased 75% of Dave Ltd's ordinary share capital for 1,800,000 when the retained earnings of Dave Ltd were f1,100,000. There has been impairment of recognised goodwill in respect of Dave Ltd to date totalling f25,000. At the same time Basil Ltd also purchased 80% of the ordinary share capital of Molly Ltd for 1,860,000 when the reserves of Molly Ltd were 640,000. There has been no impairment of goodwill in respect of Molly Ltd. Basil Ltd measures goodwill and non-controlling interest on the proportionate basis. (2) On 31 December 20X6 Basil Ltd disposed of its total shareholding in Molly Ltd for 2,400,000. These proceeds have been debited to the cash account and credited to a suspense account. No other accounting entries have been made in respect of this disposal. Basil Ltd must pay 30% tax on the profit on this disposal in its own financial statements within 12 months of the statement of financial position date of 31 March 20X7. Molly Ltd's retained earnings at 1 April 20X6 were 880,000 and during the year to 31 March 207 profits accrued evenly. (3) During the year to 31 March 207 Dave Ltd sold goods to Basil Ltd at cost plus a mark-up of 25%. At 31 March 20X7 80,000 of these goods at cost to Basil Ltd were included in Basil Ltd's inventories in its statement of financial position. (4) The issued share capital of Dave Ltd and Molly Ltd has not changed since the acquisitions were made and at the dates of both acquisitions the fair value of the net assets of the companies were equal to their carrying amounts. Requirements (a) Calculate the profit or loss on disposal after tax of the investment in Molly Ltd that will be shown in: (i) Basil Ltd's separate financial statements (ii) The Basil group consolidated financial statements ( 9 marks) (b) Prepare the consolidated statement of financial position of the Basil group as at 31 March 20X7 (17 marks) Note: Work to the nearest f000. (26 marks)