On 1 April 2020, Cambell Berhad acquired 75% of the 1,000,000 equity share of Soup Berhad. Soup Berhad had been experiencing difficult trading conditions and making significant losses. In allowing for Soup Berhads difficulties, Cambell Berhad made an immediate cash payment of only RM15.00 per share. In addition, Cambell Berhad will pay a further amount in cash on 30 September 2021 if Soup Berhad returns to profitability by that date. The value of this contingent consideration at the date of acquisition was estimated to be RM1.8 million, but at 30 September 2020 in the light of continuing losses, its value was estimated at only RM1.5 million. The contingent consideration has not been recorded by Cambell Berhad. Overall, the directors of Cambell Berhad expect the acquisition to be a bargain purchase leading to negative goodwill. At the date of acquisition, shares in Soup Berhad had a listed market price of RM8.00 each. Below are the summarised draft financial statements of both companies.

Required:- Using full goodwill method, compute the amount of goodwill / bargain purchase attributable to the acquisition of shares in Soup Berhad as at 30 September 2020.

[10 marks]

INCOME STATEMENTS FOR THE YEAR ENDING 30 SEPTEMBER 2020 Revenue Cost of sales Gross profit Other investment income Cambell RM'000 100,000 (36.000) 64,000 434,000 Soup RM'000 66,000 (67,200) (1,200) (2.000) 5 (56,000) Operating expenses Finance costs Profit before tax Income tax expense Profit for the year 442,000 (112,000) 330,000 (2,400) nil (5,600) 1,000 (4,600) 16,600 (4.600) Opening retained earnings Profit/ (loss) for the year Dividends paid Closing retained earnings 264,000 330,000 (70,000) 524,000 12.000