BAAB 4313: CORPORATE REPORTING TEST 2: 26 JULY 2018 TIME: 11.45SAM- 1.45PM (2 HOURS) On 1 January 2012, Raymond Manufacturing Bnd(RMB) acquired 80% ownership interest in Catherine Manufacturing Sdn Bhd (CMSB) for RM 400,000. On the same date, RMB also acquired 70% of Gary Enterprise of purchased and year end for both CMSB and GESB were as follows: Sdn Bhd (GESB) for RM 300,000. The net assets on the date CMSB (RM) GESB (RM) 1/1/2012 31/12/2016 1/1/2012 31/12/2016 General Reserve Share Premium Revaluation Reserve Retained Eanings 30,000 40,000 10,000 20,000 20,000 150,000 100,000 100,000 300,000 200,000 100.000 20,000 10,000 100,000 500,000 10,000 on 30 September 2016, RMB disposed of 35% all its interest in CMSB for RM 500,000. RMB received cash for the disposal. The following are the accounts balances (extract) taken from the records of the three companies as at 31 December 2016. RMB (RM'000) CMSB (RM000) GESB (RM'000) Net Income before Tax (300)500 1,000 300 (50) 250 1,300 Tax Expenses (100) Net Income after Tax Share Capital of RM1 each Share Premium Retained Earnings Other components of Equity 5,000 400 3,000 600 500 400 100 500 100 250 Sales of Shares - Suspense 1,000 10,500 500 350 1,800 1,200 Investment at cost Subsidiaries & associates Other Assets 700 9,800 10,500 1,800 1,800 1,200 1,200