QUESTION 1 P acquired 75% of the ordinary share capital of S several years ago. The statements of comprehensive income of P & S for the year ended 31 December 2021 are as below. P (RM'000) S (RM'000) Revenue 2,400 800 Cost of sales and expenses (2,160) (720) Operating profit 240 80 Dividend received from S 1.5 = Profit before tax 241.5 80 Taxation (105) (38) Profit after tax 136.5 42 Additional information: 1. P sold goods of RM80,000 to B at a mark-up of 25%. 2. All the goods are still remain in B inventory at the year end. 3. Additional fair value depreciation for the current year amounted to RM10,000. All depreciation charged to cost of sales. Required: a) Present the consolidated statement of comprehensive income for the year ended 31 December 2021. (Show all workings) b) Discuss on the application of the equity method in preparing consolidated financial statements.