Madini Limited acquired 15% equity in Dhahabu Limited on 30 June 2020 for KShs 1.1 billion. Madini has the right to appoint the Managing Director and Finance Director of Dhahabu and also controls the board of directors of Dhahabu Limited. Dhahabu Limited is in the business of exploration of gold deposits in Migori District and at the acquisition date had assets with a fair value of KShs 4 billion. Madini and Dhahabu entered a joint venture agreement on 31 July 2020 to explore a new mine in Kilgoris. Madini Limited reported its financial performance in its audited financial statements on 31 December 2020. As at 31 December 2020 Dhahabu generated a net income of KShs 450 million and declared and paid a dividend of KShs 200 million. Dhahabus historical financial year runs from 1 July to 30 June every year and its last audited financial statements are as at 30 June 2020.

4. Which is the best date for Dhahabu to release its nest audited results?

1. 30 June 2021
2. 31 July 2020
3. 31 March 2021
4. None of the above

5. What was the goodwill paid by Madini for its investment in Dhahabu?

1. KShs 600 million
2. KShs 500 million
3. KShs 3.9 billion
4. None of the above