Question 1 On 1 November 20x3, Putra Bhd acquired 80% of the equity shares of Setia Bhd for RM110 million. At the date of acquisition when Setia Bhd's retained earnings were RM56 million and other components of equity were RM8 million. The share capital of Setia Bhd remain unchange RM50 million of RM1 each since 1 November 20x3. The fair value of the net assets of Setia Bhd was RM120 million at the date of acquisition. This does not include a contingent liability which was disclosed in Setia Bhd's financial statements as a possible obligation of RM5 million. The fair value of the obligation was assessed as RM1 million at the date of acquisition and remained unsettled as at 31 October 20x5. RM5 million is still disclosed as a possible obligation with no change in its fair value. Any remaining difference in the fair value of the net assets at acquisition relates to non-depreciable land. The fair value of the non- controlling interest at acquisition was estimated as RM25 million. Putra Bhd always adopts the full goodwill method under MFRS 3 Business Combinations. The group financial year end was 31 October 20x5. i) What was the value of non-depreciable land in Setia Bhd's book? A - RM4 million B - RM5 million C - RM6 million D - RM7 million ii) What should be appears as goodwill in the Consolidated SOFP as at 31 October 20x5? ii) What should be appears as goodwill in the Consolidated SOFP as at 31 October 20x5? A- RM10 million B - RM14 million C - RM16 million D - RM17 million