QUESTION 1 The following are the condensed statements of financial position of Cats Ltd and its subsidiary Dogs Ltd as at 31 December 2020, the date on which Cats Ltd obtained its interest in Dogs Ltd: Cats Ltd Dogs Ltd ASSETS R R Property, plant and equipment 20 000 10 000 Investment: Dogs Ltd (50 000 ordinary shares at cost) 68 000 Trade receivables 82 000 60 000 170 000 70 000 EQUITY AND LIABILITIES Share capital (120 000 & 50 000 shares respectively) 120 000 50 000 Retained earnings 50 000 20 000 170 000 70 000 Additional information: Assume that the identifiable assets acquired, and the liabilities assumed at acquisition date are shown at their acquisition date fair values, as determined in terms of IFRS 3. REQUIRED: 1.1 Prepare the at acquisition pro-forma consolidation journal entries in respect of the investment in Dogs Ltd for the Group for the year ended 31 December 2020. 1.2 Prepare the consolidated statement of financial position of Cats Ltd and its subsidiary as at 31 December 2020. Show ALL calculations. Guidelines: All answers must be typed out and workings must be showing