P Ltd bought 80% of S Ltd's equity shares on 1 January 2016. On the date of the purchase of S Ltd's shares, among other things, S Ltd's statement of financial position contains the following: Retained profit S 72,000 Tangible non-current assets Cost 288,000 Fair value 360,000 On the date of acquisition (of S Ltd's shares) by P Ltd, S Ltd's assets were not revalued to fair value. It is part of S Ltd's accounting policy to depreciate non-current assets on a straight-line basis for 10 years. The income statements of P Ltd and S Ltd for the year ended 31 December 2020 are as follows: P Ltd $ S Ltd $ Revenue 240,000 168,000 Cost of sales 144,000 24,000 Gross profit 96,000 144,000 Expenses 12,000 14,400 Depreciation and amortization 24,000 28,800 Operating profit 60,000 100,800 Income tax 9,600 2,400 Net profit 50,400 98,400 Reserves (brought forward) 240,000 168,000 Reserves (carried forward) 290,400 266,400 Note: P Ltd and S Ltd are considered to be in the same group for the purpose of financial reporting,