On 1 January 2021, Gift Ltd ("Gift") acquired 45% of the issued shares of Treats Ltd ("Treats") from a third party at a cost of R230 000. The share capital of Treats remained the same since the acquisition. In accordance with the contractual arrangement, Gift exercises joint control over Treats. The arrangement was classified as a 'joint venture' in accordance with IFRS 11 Joint Arrangements. The following trial balances were obtained from the financial records of Gift and Treats for the financial year ended 31 December 2022 : On the acquisition date of 1 January 2021 , Treats had the following balances: On 1 January 2021 , the net assets of Treats were considered to be fairly valued. Since acquisition, Treats sells inventory to Gift at a profit of 50% on cost price. The following inventories (sold from Treats to Gift), at cost price for Gift, were still on hand at the end of the respective financial years: Dividends receivable by Gift from Treats were included as part of Gift's 'trade and other receivables' and dividend income was included as part of 'other income'. Additional information: - It is Gift's policy to measure its investments in joint ventures at cost in its separate financial statements. - The other comprehensive income of Treats for the year contains only gains regarding investments that are mark-to-market. - Assume a companies' Income Tax rate of 28% and 80% of capital gains are included in taxable income. - Ignore the effects of Dividend Tax and Value Added Tax (VAT). REQUIRED: Prepare all the pro forma journal entries to equity account for Gift Ltd's investment in Treats Ltd for the financial year ended 31 December 2022. Dates and narrations are not required. (40 marks) On 1 January 2021, Gift Ltd ("Gift") acquired 45% of the issued shares of Treats Ltd ("Treats") from a third party at a cost of R230 000. The share capital of Treats remained the same since the acquisition. In accordance with the contractual arrangement, Gift exercises joint control over Treats. The arrangement was classified as a 'joint venture' in accordance with IFRS 11 Joint Arrangements. The following trial balances were obtained from the financial records of Gift and Treats for the financial year ended 31 December 2022 : On the acquisition date of 1 January 2021 , Treats had the following balances: On 1 January 2021 , the net assets of Treats were considered to be fairly valued. Since acquisition, Treats sells inventory to Gift at a profit of 50% on cost price. The following inventories (sold from Treats to Gift), at cost price for Gift, were still on hand at the end of the respective financial years: Dividends receivable by Gift from Treats were included as part of Gift's 'trade and other receivables' and dividend income was included as part of 'other income'. Additional information: - It is Gift's policy to measure its investments in joint ventures at cost in its separate financial statements. - The other comprehensive income of Treats for the year contains only gains regarding investments that are mark-to-market. - Assume a companies' Income Tax rate of 28% and 80% of capital gains are included in taxable income. - Ignore the effects of Dividend Tax and Value Added Tax (VAT). REQUIRED: Prepare all the pro forma journal entries to equity account for Gift Ltd's investment in Treats Ltd for the financial year ended 31 December 2022. Dates and narrations are not required. (40 marks)