Question 1 (20 marks) On 1 January 2019, Company P purchased 80% of the equity of Company S. The following transactions arose at the acquisition date. Issue of P's shares Immediate cash payment Deferred cash payment Due diligence fees paid to lawyers Equipment transferred 1,200,000 shares (Note b] $400,000 $1,000,000 payable 2 years later $20,000 $40,000 (fair value=book value) Note: a. P's effective interest rate was 5% per annum. b. P's share price is $1.25 c. The fair value of non-controlling interests at acquisition date was $640,000. d. Share capital and Retained earnings of S were $1,000,000 and $900,000 respectively on 1 January 2019. On the same day, there was an intangible asset carried in Sat $500,000 but the fair value of it was $700,000. Required: a. Determine the fair value of the consideration transferred on 1 January 2019 in accordance with IFRS 3 Business Combinations. Round to the nearest integer. (4 marks) b. Prepare the journal entries in P's books on 1 January 2019. (7 marks) C. Calculate the goodwill on 1 January 2019. (3 marks) d. Discuss the three qualitative factors set out in IFRS 10 Consolidated Financial Statements to determine the existence of "Control". (6 marks) [Total for Question 1: 20 marks]