On 1.1.2021, Capitol acquired 80% of the issued ordinary shares of Katniss a foreign subsidiary in District 13. Katniss prepares its financial statements in KN the currency of District 13. The statement of financial position for Capitol and Katniss as at 31.12.2021 are as follows: Katniss KN '000 Investment in Katniss Property, plant and equipment Inventories Trade receivables Cash in bank Total Assets Capitol RM '000 6,000 20,600 2,080 2,420 6,460 37,560 6,800 2,400 1,900 2,200 13,300 24,000 2,000 8,260 6,000 Nil 4,600 Ordinary shares Preference shares Retained earnings Current liabilities: Trade payables Bills payables Total Equities and Liabilities 3,100 200 37,560 2,700 nil 13,300 Additional Information: 1. The rates of exchange are given as follows: 1.1.2021 Average rate for the year 31.12.2021 Closing date inventory was purchased Opening date inventory was purchased 1.1.2017 - date which property, plant and equipment were acquired KN 2.2 1.8 2 2.1 2.2 2.5 RM 1 1 1 1 1 1 On Required: a) Translate the statement of financial position belonging to Katniss from foreign to functional currency. (7 marks) b) Prepare the consolidated statement of the financial position as at 31.12.2021. Show all relevant workings. (8 marks) c) Briefly explain the treatment of exchange differences when a foreign subsidiary is disposed. (3 marks) Note: Round up your answer to the nearest RM. [18 marks]