Question 2 January 1, 2015, Nicole purchased 30% of the voting share of Tom for RM560,000. In the financial year ended 31 December 2015, Tom reported pre-tax profits of RM240,000. The tax charge was RM40,000. During the financial year ended 31 December 2015, an amount of RM10,000 was paid by Tom to its shareholders. The information reported in the year ended 31 December 2016 are as follows: Pre-tax profits (RM15,000) Tax credit RM2,000 A review of Nicole's investment in Tom as at 31 December 2016 concluded that impairment had taken place amounted to RM90,000. Required: Calculate the carrying amount of the investment in Tom to be recorded by Nicole as t 2016. Question 3 Happy purchased a 40% of the share capital of Gurney of RM475,000. The financial statements of the two companies for the year ended 31 December 2020 are as below: Profits from operations Interest expense Profit before tax Tax expense Profit after tax Statement of Profit or Loss Happy (RM) 1,300,000 (150,000) 1,150,000 (100,000) 1,050,000 Gurney (RM) 300,000 (50,000) 250,000 (50,000) 200,000 Statement of Financial Position Happy (RM) Gurney (RM) Assets Investment in Gurney Other assets 475,000 2,200,000 2,675,000 1,100,000 1,100,000 Capital and liabilities Share capital 500,000 250,000 Retained earnings 1,775,000 750,000 Liabilities 400,000 100,000 2,675,000 1,100,000 Additional information: 1. Gurney paid dividend of RM150,000 in the year. 2. Happy has incorporated its share of this dividend in profit from operation Required: Prepare the CSOFP and CSOPL for the group year ended 31 December 2020