Question 2 The Statement of Financial Position for Octagon Limited and Superior Sales Limited as at 31 December 2019 are shown below: Octagon Limited Superior Sales Limited Non-Current Assets: $ S Property, Plant & Equipment 3,000 1,500 Investments: in Superior Sales Ltd 1,500 4,500 1,500 Current Assets: Inventory 650 200 Accounts Receivables 750 420 Cash and Bank 350 100 1.750 720 Total Assets 6,250 2,220 Current Liabilities: Accounts Payables 250 175 Accruals 150 40 400 215 Non-Current Liabilities: Debentures 1,200 800 Deferred Taxation 300 130 1,500 930 Share Capital and Reserves: Ordinary Share Capital @ $1 each 3,150 975 Retained Profit 1,200 100 4,350 1,075 6.250 2.220 Additional Information: A. Octagon Limited acquired 2,000,000 of the equity shares in Superior Sales Limited on January 1, 2018. The total equity shared of Superior Sales Limited was 2,500,000 and Superior Sales Limited retained profits balance was $450,000 at that date. B. Property, Plant and Equipment (PPE) for Octagon Limited increased by $2.5m due to a revaluation carried out by the company and this was not accounted for at the end of the year. There was no impairment of assets during the year.