Question 2 (30 marks) Below are the draft accounts of Parent Co and its wholly-owned subsidiaries and of Associate Co. Parent Co acquired 20% of the equity capital of Associate Co five years ago when the latter's retained profits stood at $60,000. Summarised statement of financial positions: Parent Co and subsidiaries Associate Co $'000 $'000 Property, plant and equipment 400 180 Investment in Associate at cost 80 Loan to Associate Co 30 Current assets 190 70 Loan from Parent Co (30) 700 220 Share capital 200 100 Retained profits 500 120 700 220 Summarised statement of profit or loss: Profit before tax Taxation Assign Parent Co and subsidiaries Associate Co $'000 $'000 120 100 (30) (20) 90 80 Required: Prepare the journal entries to incorporate the operating results of the Associate Co using the equity method of accounting and prepare the consolidated statement of financial position and statement of profit or loss. Question 3 (40