Question 2 (15 marks): Ceaser plc is the parent of a group of companies. On 1 January 2021. Ceaser ple acquired 35% of the ordinary share capital of Brutus Ltd at a cost of 200,000. During the year to 31 December 2021 Brutus Led made a profit after tax of 84,000 and paid an ordinary dividend of 54,000. Page 4 of 6 b. Required: Calculate Investment in Associate to be reflected in the consolidated financial statements of Ceaser plc for the year to 31 December 2021. (5 marks) An investor company has a 25% interest in an associate. During the year to 31 December 2021, the investor bought goods from the associate on which the associate earned a profit of 10,000. One- half of these goods remained unsold by the investor at the year end. Required: Calculate the unrealised profit on this transaction and explain how this is eliminated from the investor's financial statements. (5 marks) c. The following figures relate to inventory held at the year end. f Cost Selling price 30 Modification cost to enable sale Marketing costs 7 Units held 200 Required: Calculate the value of inventory held in line with IAS 2 "Inventories". (5 marks) B 9 12 2 2 150 12 22 8 2 300