Question 1 (50 marks) Costa Ltd is a company with a 30 June year end. The following information relates to Costa Ltd and its subsidiary Jumbo for the year ended 30 June 20.22. Costa Ltd Jumbo Ltd Dr Cr Dr Cr Property at cost 600 000 160 000 Equipment at cost 300 000 180 000 Inventories 100 000 80 000 Investment in Jumbo Ltd @ 204 000 fair value 30 000 ordinary shares (Cost is equal to fair value) Bank Obese Bank 1200 12 000 Trade and other receivables 124 400 406 800 Income tax expense 190 000 170 000 Provisional tax payments 100 000 90 000 Loan to parent (interest free) 140 000 Dividends paid- ordinary 40 000 30 000 shares Dividends paid - preference 12 000 7 500 shares 1 671 600 1 276 300 Issued share capital - 200 000 100 000 Ordinary shares of R2 each Issued -15% Cumulative 80 000 50 000 preference shares, R1 each Retained earnings - 190 000 138 000 beginning of year Page 2 of 9