On $1$ January $2020,$ Raqib Construction Bhd$.($RCB$)$ acquired a $90\%$ ownership interest in Cider Construction Sdn Bhd $($CCSB$)$ for RM$500,000.$ On the same date, RCB also acquired $80\%$ of Gary Construction Sdn Bhd $($GCSB$)$ for RM$300,000.$ The net assets on the date of purchase and year$-$end for both CCSB and GCSB were as follows:

$\backslash$table$[[,$CCSB$,$GCSB$],[,\frac{1}{1}\frac{?}{2020},\frac{31}{12}\frac{?}{2022},\frac{1}{1}\frac{?}{2020},\frac{31}{12}\frac{?}{2022}$

Investment at a cost:

Subsidiaries $800--$

Quoted Shares $100$

Other Assets $9,6001,8001,200$

$10,5001,8001,200$

Additional information:

$1.$ The shareholders$$ funds are assumed to be representative of the fair values of the

identifiable assets of CCSB and GCSB at the date of acquisitions. It is the group policy to

allocate goodwill to Non$-$Controlling Interest $($NCI$)$ and there was no impairment of

goodwill for the current year.

$2.$ During the year RCB bought merchandise from GCSB for RM$500,000.$ The year$-$end

inventory of RCB included RM$100,000$ purchased from GCSB$.$ The inventory cost to GCSB

was RM$50,000.$

$3.$ RCB would like to write down their Investment in Quoted shares by RM$20,000$ citing a

reduction in value as the reason.

Required:

a$)$ State which MFRS you will use in accounting for the Investment in Quoted Shares. Write

the accounting treatment that you will do for the Investment as per additional

information $(3)$ above.

$(4$ marks$)$

b$)$ Compute the Group$$s gain or loss on disposal.

$(6$ marks$)$

c$)$ Calculate the goodwill, pre$-$ and post$-$acquisition reserves for the NCI that the group will

recognize in the consolidated financial statement. The group policy is to use the full

goodwill method.

$(26$ marks$)$

d$)$ Prepare journal entries to consolidate the Group. Show all your workings.

$(20$ marks$)$

e$)$ Consolidate the Group as of $31$ December $2022$ using the worksheet form.

$(44$ marks$)$