QUESTION 3 The following financial information of Sub Ltd and Parent Ltd has been extracted from their respective financial records for the year ended 31 March 2022: Parent Ltd Sub Ltd Sales $1 531 000 $780 000 Less: Cost of goods sold 648 000 324 000 Gross profit 883 000 456 000 Dividend income 16 000 Consulting fee income 17 000 Less: Expenses 703 000 358 000 Profit before taxation 196 000 115 000 Less: Income tax expense 78 400 39 200 Profit after taxation 117 600 75 800 Retained profits-opening 590 000 290 000 Less: Dividends declared 50 000 20 000 Balance Sheet items: Retained profits-closing 657 600 345 800 Share capital 370 000 180 000 Asset revaluation surplus 152 000 90 000 Dividend payable 39 000 14 000 Consulting fee payable 17 000 Various non-current liabilities 404 000 190 200 Total equity and liabilities $1 639 600 $820 000 Dividend receivable 11 200 Inventory 82 000 36 000 Consulting fee receivable 17 000 Various assets 1 246 400 767.000 Investment in Sub Ltd 300 000 Total assets $1 639 600 $820 000