Other payables $9,116,000 $2,184 ,000 Details of acquisition of Y Go by P Co: 1 Jan Date of purchase: 20x1 Percentage acquired 80% Share capital $400,000 Retained earnings 500,000 $900,000 Additional information: 1. Fair value of fixed assets of 8 Co as at acquisition was $1,200,000 while its book value was $1,000,000. Remaining useful life for the fixed assets as at acquisition date was four years and the residual value of the fixed assets was zero. 2. Fair value of non-controlling interests as at acquisition was $240,000. 3. Tax rate is 20%. Recognize tax effects on fair value adiustments. P Co acquired 80% interest in Y Co on 1 January 20x1. Income Statement for the year ended 31 December 20x3 P Co Y Co Operating profit $3,000,000 $980,000 Dividend income from Y 400,000 Interest income Y and bank 120,000 Interest expense to P (100,000) Profit before tax $3,520,000 $880,000 Tax @20% (704,000) (176,000) Profit after tax $2,816,000 $704,000 Dividends declared 800,000) (500,000) Profit retained $2,01 6,000 $204,000 Retained earnings, 1 January 4,450,000 690,000 Retained earnings, 31 December $5:465:000 $894,000