Oliver Plc has owned 60% of the share capital of Twist Plc for many years. Retained earnings of Twist Plc for the year end 31st December 2020 are 2,000,000.

Oliver Plc bought 35% of the share capital of Charles Plc on 1st January 2020 at cost of 1,800,000. Charles has made a profit for the year ended 31st Dec 2020 of 500,000 and has sold goods to Oliver Plc during the year with a sales value of 120,000. All sales were at a margin of 20% and half of them remain in year-end inventories. Oliver Plc has retained earnings at 31st December 2020 of 6,000,000.

Complete the statements below by filling in the blanks:

The amount of investment in Charles to be shown in the consolidated statement of financial position for the year ended 31 December is Blank 1.

The share of profits of Charles to be shown in the consolidated statement of profit or loss for the year ended 31 December 2020 is Blank 2.

To calculate the group retained earnings the following amounts needs to be included.

Parent RE Blank 3; Parent share of subsidiary post acquisition RE Blank 4; parent share of associates post acquisition RE Blank 5 and any adjustments Blank 6.

Group retained earnings to be shown in the consolidated statement of financial position is Blank 7.