On this festive New Year 2021, I hope my question can be answered, thank you very much, and Happy New Year!

Please do help me complete this accounting question, I have been stuck for days. Would be immensely grateful if a Chegg Expert can help.

QUESTION 1 Alor Bhd has been in business selling high quality furniture for kitchen, living room and bathroom in Melaka. After almost 25 years in this furniture business, the company faced stiff competition from China. However, the company went ahead with new idea to survive and passionate about being the most affordable furniture store in Malaysia. 1 July 2016 The board of directors decided to embark a new business model by aggressively focusing on design, build and custom furniture. The company new mission is to be a lifestyle industrial design, which creates classically inspired leather, wood and metal product. Due to that, Alor Bhd made 100% investments in Gajah Bhd and Lendu Bhd, both supplying wood and metal components including solid wood flooring, solid timber flooring and total roofing work. Alor Bhd foresees the potential of both new established companies which strategically located in the same vicinity of Alor Bhd. These acquisitions Alor Bhd to increase its company market share and reduce the company overall operating costs. The consideration transferred paid were equal to the fair value of the net assets of Gajah Bhd and Lendu Bhd. 1 July 2019 Kelemak Bhd was previously a rival company of Alor Bhd. Despite numerous economic downturns, the development of Kelemak Bhd outperforms Alor Bhd. Acknowledging that Kelemak Bhd may pose threat to Alor Bhd, the company acquired 60% of ordinary shares of Kelemak Bhd at a market price of RM2 each. The total consideration comprises of 90% cash and the remaining 10% in the form of Alor Bhd's 6% Preference Shares. However, only cash transaction has been recorded. The total fair value of the net assets of Kelemak Bhd was RM88 million and included in this amount was a fair value adjustment of Kelemak Bhd's non-depreciable land. This adjustment, however, has not been recorded. During the post-acquisition period, Kelemak Bhd has not issued any new shares. 1 January 2020 Alor Bhd decided to further acquire 20% of the ordinary shares in Kelemak Bhd for RM20 million cash. On the same day, Alor Bhd acquired 30% of the ordinary shares of Melekek Bhd at RM15 million. For the year ended 30 June 2020, Melekek Bhd generates a profit of RM4 million. The following information was taken from the books of Alor Bhd and its group: Statements of Financial Position as at 30 June 2020 Alor Bhd RM million Gajah Bhd RM million Lendu Bhd RM million Kelemak Bhd RM million 226 97 50 Property, Plant and Equipment Investment in Gajah Bhd Investment in Lendu Bhd Investment in Kelemak Bhd Investment in Melekek Bhd Other investment Intangibles Trade Receivables Other Current Assets 179 150 100 74 15 110 11 20 26 685 41 20 7 20 314 100 6 22 17 242 30 40 12 142 50 400 150 100 6% Preference shares Ordinary shares: 150 million units in Gajah Bhd 100 million units in Lendu Bhd 50 million units in Kelemak Bhd Retained profits Other reserves Long-term Loan Current Liabilities 228 30 101 20 30 13 314 50 14 4 24 242 50 25 8 50 9 142 27 685 Statements of Profit or Loss and and Other Comprehensive Income for the year ended 30 June 2020 Alor Gajah Lendu Kelemak Bhd Bhd Bhd Bhd RM RM RM RM million million million million Revenue 42 40 72 26 (16) 24 (13) 13 : Cost of sales Gross Profit Gain on disposal Investment income Expenses Profit before taxation Taxation Net Profit (15) 27 5 5.4 (14.8) 22.6 (4.9) 17.7 2 (18) 8 (2) 6 (18) 54 1 5.7 (20) 40.7 (10.2) 30.5 0.3 (8.3) 5 (1.2) 3.8 Alor Bhd Statement of Changes in Equity for the year ended 30 June 2020 Share Capital RM million Other Reserves RM million Retained Profits RM million 400 30 Balance b/d Net Profit Dividend Balance cld 218 17.7 (7.7) 228 400 30 Gajah Bhd Statement of Changes in Equity for the year ended 30 June 2020 Share Capital RM million Other Reserves RM million Retained Profits RM million 150 20 95 6 Balance b/d Net Profit Dividend Balance cld 150 20 101 Lendu Bhd Statement of Changes in Equity for the year ended 30 June 2020 Share Capital RM million Other Reserves RM million Retained Profits RM million 100 14 Balance b/d Net Profit Dividend (preference dividend and ordinary dividend) Balance cld 25.5 30.5 (6) 100 14 50 Kelema Statement of Changes in Equity for the year ended 30 June 2020 Share Capital RM million Other Reserves RM million Retained Profits RM million 50 8 Balance b/d Net Profit Dividend Balance cld 22 3.8 (0.8) 25 50 8 Additional information: 1. On 29 June 2020, Gajah Bhd sold goods costing RM15 milion to Lendu Bhd at an invoice price of RM20 million. The goods were received and still in the store of Lendu Bhd on 30 June 2020. The amount was still due in both company's book on 30 June 2020. 2. During the year, Alor Bhd has disposed a machine that has a carrying value of RM20 million at a profit of RM4 million to Gajah Bhd. Lendu Bhd has also sold a motor vehicle, with a carrying value of RM5 million, to Gajah Bhd at a profit of RM1 million. Plant and Equipment of the group was depreciated at 10% on cost. 3. Melekek Bhd sold a piece of land to Alor Bhd at a profit of RM1 million. 4. On 1 June 2020, Gajah Bhd borrowed RM8 million from Alor Bhd which the amount is due on 30 September 2020. 5. All dividends are declared and paid on 28 June 2020. 6. Alor Bhd measured the non-controlling interest in Kelemak Bhd at a fair value of RM35 million on 1 July 2019. 7. It is the policy of Alor Bhd that goodwill on acquisition of subsidiary should be impaired at 10% per year. Investment in associate is not impaired. 8. The group applied the proportion of net assets method for measuring the non-controlling interest when recognizing the goodwill on acquisition of subsidiaries. 9. Profits and losses are deemed to accrue evenly throughout the year. Required: a. Compute goodwill/bargain purchase on acquisition of Kelemak Bhd. (5 marks) b. Calculate gain/losses arising from second acquisition of shares in Kelemak Bhd. (5 marks) C. Determine carrying amount of investment in Melekek Bhd. (3 marks) d. Compute group retained profit and non-controlling interest as at 30 June 2020 using the schedule form. (13 marks) e. Prepare the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2020. (18 marks) f. Prepare the Consolidated Statement of Changes in Equity for the year ended 30 June 2020. (10 marks) g. Prepare the Consolidated Statement of Financial Position as at 30 June 2020. (16 marks) (Total: 70 marks)