Below are the Statements of Profit and Loss of two companies for the year ended 31 December 2020. Gagah KM Perkasa KM Turnover 1,700,000 1,100,000 Cost of sales (600,000) (400,000) Gross Profit 1,100,000 700,000 Operating Expenses (300,000) (180,000) Operating profit before tax 800,000 520,000 Dividends from quoted investment 40,000 30,000 Debenture interest (20,000) Debenture interest from Perkasa 8,000 Dividends from Perkasa Ordinary 48,000 Preference 6,300 902,300 530,000 Taxation (300,000) (200,000) Profit for the year 602,300 330,000 Additional information: 1. Retained profit on 1 January 2020 and dividends for year 2020 are as follow: Gagah RM Perkasa RM Retained profit 1 January 2020 220,000 100,000 Dividends paid Ordinary 120,000 80,000 Preference for half-year only 21,000 2. Gagah acquired 240,000 ordinary shares, 120,000 preference shares and RM80,000 10% debentures of Perkasa on 1 July 2015 when the retained profit of Perkasa was RM40,000. 3. The issued share capital of Perkasa were 400,000 ordinary shares of RM1 each, and 400,000 preference shares of RM1 each. 4. On the acquisition date, the fair value of Gagah's plant was RM200,000 more than its carrying amount. The additional depreciation based on fair value is RM20,000. 5. Sales of Gagah include sales to Perkasa of RM200,000. Gagah sells goods to Perkasa at cost plus 25%. RM40,000 of the goods purchased from Gagah still remain as the closing inventory of Perkasa. 6. The group only recognizes the parent's share of goodwill which was RM40,000. As at 31 December 2019. 50% of the goodwill was impaired and there is no impairment in the year 2020. Required: a) Prepare the Consolidated Statements of Profit or Loss of Gagah Group for the year ended 31 December 2020. (20 marks) (CL03:PLO3:C4) b) Compute the group's retained profit to be carried forward to the Consolidated Statements of Financial Position. (5 marks) (CLO3:PLO3:C4)