QUESTION 3 Halom and Alom Halom purchased 40% of the share capital of Alom for 100 k$. Halom has significant influence over Alom. The net asset value of Alom on 1st January 2014 was 360 $. The 40% stake in Alom was acquired on 1st January 2014. Alom had net profit 250 k$. Alom approved a dividend of 100 k$ of which the share of Halom was 40 k$. This dividend was paid before 31st December. There was no connection between Halom and Alom other than dividend REQUIRED: Explain what is going to be in the consolidated balance sheet regarding Alom? How much is going to be the value of the item and what is the name of the balance sheet line? 1. 2. What is the effect on the statement of comprehensive income? Which income statement line effected? Now assume that Halom gave a loan to Alom that amounted to that amounted to 100 k$. This was recognized as a loan receivable by Halom and a loan payable by Alom. How will this loan receivable and loan payable be shown in the financial statements where Alom is shown using the equity method? Why? (Your answer should not exceed 1 page.) 3