Question 2: The statements of comprehensive income for Alicante plc, London plc and Madrid plc for the year ended 31 October 2020 are as follows: Statements of comprehensive income for the year ended 31 October 2020 Alicante London Madrid 000 000 000 Sales 135,000 77,000 66,500 Cost of sales 45,000 32,000 24,000 Gross profit 90,000 45,000 42.500 Expenses 23.500 26,600 37,000 Dividends received 6,850 N/A 3,000 Profit before tax 73,350 18,400 8.500 Corporate Taxation 20,350 8,750 3,500 Profit for the year 53,000 9,650 5,000 Dividends paid in year 26,000 5,250 2,000 The following information is also relevant: 1. Alicante plc acquired 60% of the shares in London plc on 1 November 2016 for a cash consideration of 51,500,000. The balance on the retained earnings of London plc was 45,000,000 and the balance on the general reserve of London plc was 20,000,000 on that date. 2. Alicante plc also acquired 30% of the shares in Madrid plc on 1 November 2017. The balance on Madrid plc's retained earnings was 12,500,000 and the general reserve of Madrid plc was 2,000,000 on that date. There was a revaluation on Madrid Plc's net assets on that date and this revaluation has been adjusted in the statements. 3. During the year Alicante plc sold London plc goods for 7,000,000 which included a mark-up of 40%. Fifty-five percent (55%) of these goods were still in inventory at the end of the year. 4. As at 31 October 2020, goodwill impaired by 20%. and the Method 1 is used to calculate the goodwill. 5. During the year, the corporate taxation expense at Alicante plc has been overestimated by 1,500,000, and this has not been adjusted. You Are Required To: a. Prepare Alicante plc's consolidated statement of comprehensive income for the year to 31 October 2020.