QUESTION 2 On 1 January 2021, Beta Ltd purchased the shares in Alpha Ltd. The carrying value of the assets of Alpha Ltd closely reflected the fair value on 1 January 2021. Below are the statement of financial position of Beta Ltd and Alpha Ltd as at 31 December 2021. Additional Information: The investment in Alpha Ltd is impaired by $5,000. REQUIRED: (a) Indicate the relationship between Alpha Ltd and Beta Ltd and how it arises. (4 marks) (b) Explain the four basic steps used in applying the equity method as stated in IAS28 Investment in Associates. (4 marks) (c) Compute the closing balance of Investment in Associate account at 31 December 2021 . (4 marks) (d) Prepare the Statement of Financial Position of Beta Ltd and as at 31 December 2021. (13 marks) QUESTION 2 On 1 January 2021, Beta Ltd purchased the shares in Alpha Ltd. The carrying value of the assets of Alpha Ltd closely reflected the fair value on 1 January 2021. Below are the statement of financial position of Beta Ltd and Alpha Ltd as at 31 December 2021. Additional Information: The investment in Alpha Ltd is impaired by $5,000. REQUIRED: (a) Indicate the relationship between Alpha Ltd and Beta Ltd and how it arises. (4 marks) (b) Explain the four basic steps used in applying the equity method as stated in IAS28 Investment in Associates. (4 marks) (c) Compute the closing balance of Investment in Associate account at 31 December 2021 . (4 marks) (d) Prepare the Statement of Financial Position of Beta Ltd and as at 31 December 2021. (13 marks)