Good Day, Please assist with the attached question. I am currently attempting practice questions in preparation for my finals next week. Kindly assist.

Thank you.

Pinecrest acquired the following investments over the period 2007 to 2009: On January 1, 2007, Pinecrest acquired 80% of the issued share capital of Stratford. The acquisition took the form of a share exchange of three shares in Pinecrest for every five shares in Stratford. The market price of Pinecrest shares at January 1, 2007 was $5 per share. On October 1, 2008, Pinecrest acquired a 40% interest in Albany representing 6 million shares paying $3 per share in cash and issuing Albany shareholders 6% (actual and effective rate) loan notes on the basis of $100 loan note for every 100 shares issued. The summarized income statements for the three companies for the year ended December 31, 2008 is shown below: DETAILS Pinecrest Stratford Albany Revenue Cost of sales Gross profit/loss) 105,000 62,000 50,000 (68,000) (36,500) 61,000) 25,500(11,000) 37,000 Other income Distribution costs Administrative expenses Finance costs Profit/loss) before tax Income tax (expense)/credit (8,700) (2,600) Profit/(loss) for the period 16.000 1 400 (4,000)(2,000) (4,500) (7,500)(7,000) (8,500) (1,200) 24,700 (900) 15,600(24,000) 4,000 13,000(20,000) 16,000 The following information is also relevant