Mumbai Indians Ltd (MI) specializes in providing advice to the customers on financial accounting, taxation, corporate finance and cost accounting matters. Rojaston Royals (RR) is a relevant company to the MI group. Additional information: Note 1 During 2015 MI acquired 60 000 shares in RR. At the acquisition date the retained earnings in RR amounted to N$40 000. The share capital in RR amounted to 200 000ordinary shares @ a value of N$200 000, which has not changed subsequent to acquisition date. The consideration transferred consisted of the following: Cash to the amount of N$50 000 payable immediately Transfers of one of MIs accounting software to the previous Shareholder of RR. Carrying amount N$20 000 and Fair value N$28 000 at acquisition date Transfer of the license to operate the accounting software to the value pf N$12 000 to the previous Shareholders. Transaction costs and administration costs relating to the acquisition date are N$4000 payable in cash at acquisition date. All the identifiable assets acquired and liabilities assumed of RR were shown at their acquisition date fair value and there were no unrecognized contingent liabilities. Note 2 During 2018 RR started selling inventories to MI at a profit of 30% on cost. Included in MIs inventory at 31 Dec 2018 and 31 Dec 2019 was N$150 000 AND N$80 000 respectively in respect of such inventories at cost to MI. Total sales of inventories for the year between MI and RR amounted to N$250 000. Note 3 Assume a tax rate of 25.75% Note 4 Investments in shares in the separate financial statements of MI are carried at cost. Note 5 The following information pertains to both MI &RR Retained earnings/losses balance MI RR 01 Jan 2016 150 000 46 000 01 Jan 2017 100 000 51 000 01 Jan 2018 120 000 63 000 Retained earnings opening(01-01-17) 150 000 80 000 Profit for the period 100 000 40 000 Dividend paid (40 0000 (10 000) Retained earnings closing (31-12-19) 210 000 110 000 Required: 2.1 Provide all proforma Journal entries to prepare the Consolidated annul financial statements of the MI group for year ended 31 Dec 2019 15 2.2 Calculate the amount at which the investment in associate should appear in the Consolidated statement of financial position at 31 Dec 2019. 5 Journal entries should be prepared as far as the information permits