QUESTION 1 (15 marks) Honda acquired 8 million ordinary shares of Mazda on 1 November 2020 for RM30 million. On that date the retained profit, share premium and general reserves of Mazda was RM15 million, RM1.2 million and RM1.5 million respectively. The issued share capital of Mazda is made up to 10 million ordinary shares of RM1 each. Given below are the statements of comprehensive income for the year ended 31 October 2021. Statement of Comprehensive Income for the year ended 31 October 2021 Honda Bhd Mazda Bhd RM 000 RM 000 Sales 200,000 150,000 Cost of sales (50,000) (40,000) Gross Profit 150,000 110,000 Operating expenses (25,000) (11,000) Management Fees 1,000 Profit before taxation 126,000 99,000 Taxation (50,000) (40,000) Net profit for the year 76,000 59,000 Retained profit as at 1 November 2020 55,000 40,000 Dividends paid 50,000 16,000 Other related information: 1. The Non-Controlling Interest not at fair value. 2. Sales of Honda include sales to Mazda of RM40 million. Honda sells to Mazda at cost plus 25% and quarter of these goods remain unsold in Mazda. 3. Goodwill is impaired 20% and fully recognized. 4. Honda charge Mazda for management fee rendered which is included in the statement of comprehensive income of Honda. These expenses are included in the operating expenses of Mazda. Required: a. Prepare Consolidated Statement of Comprehensive Income for the year 31 October 2021. (7 marks) b. Prepare Extract Statement of Changes in Equity. (Show all necessary working) (8 marks)