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Fancy Rerhad decided to acquire its main supplier to ensure qualiry supplies at the right prices. On I January 2020, it acquired 100 of the ordinary shares in Fili Berhad for a consideration of RM9 million. On this date, the net asets of Fifi lerhad were stated in its accounts at fair value and the share capital, retained profits and share premium were RMS million, RM3.52 million and RM320,0X00 respectively. Below was the financial information of the two companies: Statement of Profit or Loss and Movement in Retained Profits for the year ended 31 December 2020 Fancy Berhad Fifi Berhad RM000 RM'000 Sales 36,000 14,400 Cost of goods sold Opening inventories 2,640 20,800 2,160 Purchases 8,000 Less: Clasing inventories 3,440 2,800 20,000 16,000 7,360 Gross profit 7,040 Rental incomes 720 Shared service fee income Less: Operating expenses 1,080 7,520 3,200 (5,720) (3.200) Operating profit Less: Interest expenses 10,280 3,840 160 Interest income 240 Dividend incomes 2,400 2,640 (160) 3,680 Net profit hefore taxation Less: Tax expenses Net prolit for the year 12,920 3,000 9,920 2,800 Movement in retained profits Retained profits bif Net prolit for the yeur Less: Dividends paid Retained profits e/f 20,000 3,520 9,920 1,760 2,800 800 28,160 5,520