Pop Ltd acquired 112 000 ordinary shares in Corn Ltd on 31 December 2020. The following represent the abridged statements of financial position of the two companies on that date: ASSETS Non- current assets Property, plant and equipment Investment in Corn Ltd at fair value Loan Corn Ltd Current assets Inventories Trade and other receivables Cash and cash equivalents Total assets EQUITY AND LIABILITIES Total equity Ordinary shares at 50c each Retained earnings Other components of equity TOTAL LIABILITIES Non-current liabilities Loan Pop Ltd Debentures Current liabilities Trade and other payables Bank overdraft Total equity and liabilities Additional information Pop Ltd R 170 000 67 850 90 000 11 250 97 500 41 250 56 250 +1 Communication mark 267 500 215 625 125 000 75 000 15 625 51 875 12 500 25 000 14 375 Corn Ltd R 267 500 77 000 77 000 BACHELOR OF COMMERCE IN ACCOUNTING YEAR 2- ACADEMIC AND ASSESSMENT CALENDAR (RICH DISTANCE) 126 000 94 500 31 500 203 000 105 000 70 000 28 000 7 000 98 000 11 250 49 000 37 750 203 300 Pop Ltd acquired 112 000 shares at the date of acquisition in Corn Ltd. Required: 1. Prepare the pro-forma consolidation journal entries for the year ended 31 December 2020. 34 (20) 2. Prepare the consolidated statement of financial position of the Pop Ltd group as at 31 December 2020. (15) 3. Calculate the amount of goodwill/ gain from bargain purchase if the consideration paid for the acquisition of Corn Ltd was R78 000. (7) 4. Calculate the amount of goodwill/ gain from bargain purchase to be disclosed in the consolidated statement of financial position of the Pop Ltd group as at 31 December 2020. On 31 December 2020, Corn Ltd.'s shares were trading at a market value of 85c per share. (7)