parent sub. equity mother Jonnt Xfiles RM'000 12,000 (6,000) (3,400) 14.5 Given below are the statements of profit or loss of Hobo, Scandal, Apprentice and Xfiles for the year ended 31 December year x4 Hobo Scandal Apprentice RM'000 RM'000 RM'000 Tumover 20,000 15,000 10.000 Cost of sales (8,000) (7,000) (5,000) Expenses (4,200N (3,200) (2,300) Dividend income From Scandal 400 From Apprentice 400 From Xfiles 100 Other investment 600 200 300 400 Tax (3,000) (1500 (1,000) (1.000) profit for the year BV >800 Dividends paid at December x4 Ordinary 500 500 1,000 300 Preference 200 35 Nil NH Retained profit at 1 January x4 3,500 2,500 1,300 2,100 www. . Additional information: a. Hobo acquired 80 percent of the issued ordinary share capital of Scandal on 1 January 2 when the retained profit of Scandal was RM1 million. Scandal has in issue 2 million ordinary shares and 1 million 5 percent preference shares. 535 Tont venture. ciale Accounting for Associates and Joint Arrangements and Equity Basis of Accounting 45% b. Hobo acquired 4 million of the 10 miligen issued ordinary shares of Apprentice on 1 January x3 for RM6 million On the acquisition date, Apprentice's retained profit was RM500,000. It had no other reserves. The fair value of the net assets of Apprentice on 1 January x3 was RM13 million. The excess in the fair value over the carrying amount was on account of a plant whose remaining useful life was five years. Hobo acquired 500,000 of the issued 1.5 million ordinary shares of Xfiles on Aprilx4. Xfies is an of Hobo. All profits are deemed to accrue evenly throughout the year. d. During the current year, Scandal sold inventory costing RM600,000 for RM1,000,000 to Hobo. One-half of these goods remain unsold at the end of the year. The unrealised profit in the opening stock of Hobo (also bought from Scandal) was RM150,000 mpyreumure. You are required to prepare the consolidated staternent of profit or less for the year ended 31 December x4. All workings are to be disclosed. c. the iced share capital of Alter