*Peach share capital consist of 300 million units of ordinary share valued at RM1 each* *Apricot share capital consist capital consist of 200 million units valued at RM1 each*

1. The following information is available for as at 31 December 2020: Lemon Bhd is a company engaged in manufacturing industry since year 1990 and has the following shareholding in the companies as below: Retained profits Company Acquisition Date Purchase consideration RM million 400 Holding interest (%) RM million 50 80 Peach Apricot 1 January 2018 1 January 2019 150 45 55 Additional information: i. On the acquisition date of Peach Bhd, the fair value of land was RM10 million more than its carrying value. Peach Bhd did not adjust its account for the increase in the fair value. ii. During the year ended 31 December 2020, Lemon Bhd sold inventories to Peach Bhd and Apricot Bhd for invoices totaling RM3 million and RM2 million each. As at the year-end, 40% of the inventories were remained in the closing inventories of Peach Bhd and Apricot Bhd. Lemon Bhd sold at a profit margin of 20%. iii. Goodwill on consolidation is limited to parent only. iv. Lemon Bhd retains all its investments at cost. Required: Compute the followings: a. Goodwill on acquisition of Peach Bhd and Apricot Bhd. b. Unrealized profits from the sale of inventories to Peach Bhd and Apricot Bhd. C. Carrying value of investment in Apricot Bhd as at 31 December 2020. (10 marks) (CLO1:PLO1:C4)