Club Ltd and Court Ltd are two companies in the sports industry who have a 31 December year end. The following are trial balances of the two entities, for the year ended 31 December 2023:Trial balances Club Ltd (R) Court Ltd (R) DR CR DR CR Ordinary Share capital (R1 each) 1 000 000 100 000 Retained earnings: 01/01/2023 1 263 515 631 080 Ordinary dividends declared 125 000 50 000 Property, plant, and equipment 2 000 900 1 250 000 Deferred tax 157 950 - Trade and other receivables 42 000 23 000 Bank 190 000 60 000 Investment in Court Ltd (FVTPL): 31/12/2023 1 350 000 - Trade and other payables 53 000 39 000 Shareholders for dividends 125 000 50 000 Revenue 1 000 000 750 000 Other income 700 500 42 000 Other expenses 225 000 156 000 Income tax expense (P/L) 367 065 73 080 4 299 965 4 299 965 1 612 080 1 612 080 ANNEXURE I: FORMATIVE ASSESSMENT 2 88 HFAC334-1-Jan-June2024-FA2-SK-V4-05022024 Acquisition of Court Ltd Club Ltd acquired 80% of the equity in Court Ltd on 1 January 2022 and paid R700 000 in cash for the investment. At the acquisition date