QUESTION 2 (15 MARKS) Given below is the statement of financial position of Construction Bhd as at 31 December 2020. RM Non-current assets Current assets Total Assets RM 400,000 300,000 700,000 Financed by: 400,000 ordinary shares 100,000 6% preference shares Accumulated losses Total Equity 800,000 250,000 1,050,000 (600,000) 450,000 8% debentures Trade payables Total Liabilities 150,000 100,000 250,000 700,000 A scheme of reconstruction was agreed to by all parties and the required approvals have been received. . A new company named Reconstruction Bhd was formed and its constitution states that the company's capital is made up of 8% preference shares and ordinary shares. Reconstruction Bhd acquired all the assets of Construction Bhd for the following considerations:: A 9% loan stock in Reconstruction Bhd worth RM150,000 was issued to satisfy the claims of the debenture holders of Construction Bhd. The trade payables of RM40,000 were paid in cash and the balance in 9% loan stock. Four 8% preference shares were issued at RM1 each for every five preference shares in Construction Bhd. The ordinary shareholders received one ordinary share in Reconstruction Bhd for every four ordinary shares in Construction Bhd. The ordinary shares have a fair value of RM2 each The non-current assets were valued at RM440,000 and the current assets at RM170.000. 4 Required: () Determine the purchase consideration in acquisition of Construction Bhd by Reconstruction Bhd. (2.5 Marks) (i) Show the realisation account to close the books of Construction Bhd as at 31 December 2020. (3.5 Marks) (1) Determine goodwill or bargain purchase on acquisition of Contruction Bhd by Reconstruction Bhd. (2 Marks) (iv) Prepare Statemement of Financial Position of Reconstruction Bhd as at 31 December 2020, immediately after the reconstruction exercise. (7 Marks) (Total: 15 Marks)