QUESTION 1 Kamira Bhd has been in loss for the past 6 years and is approved by company's resolution and court to proceed for the internal capital reconstruction for the accounting year ended 31 December 2020. The following is the Statement of Financial Position as at 31 December 2020 prior to the reconstruction: Non-Current Assets: Land and Property Motor Vehicle Office Equipment Investments 1 Investments 2 Intangible Assets: Goodwill RM RM 482,600 376.000 140,000 998,600 165,000 90,000 88,000 Current Assets: Account Receivables 76,500 Inventory 99,000 Bank -12000 163,500 Less: Current Liabilities: Account Payables Interest Payable Equity and Liabilities: Authorised: 3,000,000 Ordinary Shares RM1.00 each 1.500.000 6% non-cumulative Pref. Shares @RM2.00 each 178,000 14,000 (192,000) 1,313,100 Issued and fully paid up capital 1,000,000 Ordinary Shares at RM1.00 each 1,000,000 300,000 6% non-cumulative Pref. Shares @RM2.00 each 600,000 Retained Earnings Asset Revaluation Reserve Share Premium 6% Bonds 3,000,000 3,000,000 6,000,000 1,600,000 (723,000) 187,600 68,500 (466,900) 180,000 1,313,100