QUESTION 2 13.1 Hail acquired 8 million ordinary shares of Sway on 1 January x3 for RM20 million. On that date, the retained profit of Sway was RM10 million and there were no other reserves. The issued share capital of Sway is made up of 10 million ordinary shares. Given below are the statements of profit or loss for the year ended 31 December x4. Turnover Cost of sales Gross profit Expenses Operating profit before tax Taxation Profit for the year Retained profit as at 1 January x4 Dividends paid Hail RM'000 Sway RM'000 200,000 150,000 (50,000) (40,000) 150,000 110,000 (25,000) (10,000) 125,000 100,000 (50,000) (40,000) 75,000 60,000 35,000 30,000 25,000 Additional information: a Sales of Hail include sales to Sway of RM10 million. All of these goods have been sold by Sway. b. Goodwill is not impaired. Required: I Prepare the consolidated statement of profit or loss for the year ended 31 December x4.