Q2. Ron bought 80,000 shares in Harry on 1 Jan XO for 104,000 when Harry had reserves showing a retained loss of 20,000. Harry has had 100,000 shares of 1 nominal value throughout the period. The fair value of Harry's assets on 1 Jan XO was the same as their NBV. During the year to 31/12/XO, Ron sold goods to Harry for 30,000, which included a profit of 12,000. At 31/12/X0, % of the goods were still in Harry's stock. Harry has paid its dividend; Ron's dividend has been proposed, but not paid at the year end. Based on the respective income statements of Ron and Harry below, prepare a consolidated Income Statement for Ron Group for the year ending 31/12/XO. Ron Harry Turnover 200 90 Cost of sales 80 50 Gross profit 120 40 Distribution exps 20 Admin exps Goodwill amortisation Operating profit 90 29 Dividend income Profit before tax 29 Taxation 30 Profit after tax 20 10 8 98 9 68