Smith acquired 80% of Jones for cash of 2,200. At the time of acquisition net assets in of Jones had fair value of 2,000 but book value of 1,200. Current balance sheets are as follows: - Required: For the Smith group Investment in B Other net assets Share capital 1 shares Retained earnings Profit/Loss a) Group Balance Sheet, b) Group Income Statement, and c) Explain the rationale for group accounts. For controlling/non-controlling interests calculate d) Return on Equity, and e) Earnings per Share Smith 2,200 2,800 5,000 4,000 800 200 5,000 Jones 1500 1500 1000 400 100 1500