QUESTION 4 (15 marks) PPC Investments Limited acquired a 75% investment in ACC Limited on 1 December 2020 for R5 100 000. You can assume that from that date, PPC Investments Limited had control over ACC Limited. The net assets, excluding a building, of ACC Limited had a fair value of R5 200 000. The building had a remaining useful life of 10 years and a carrying amount of R1 250 000. PPC Limited required an independent valuation of the building owned by ACC Limited, which indicated a fair value of R1 500 000. ACC Limited did not account for the fair value of the building The non-controlling interest at the acquisition date is measured at its fair value of R1 700 000. PPC Investments Limited recognised the equity investment in ACC Limited in its separate records using the cost price method. PPC Investments Limited has a 31 December year-end. REQUIRED: 4.1) Prepare the pro-forma journal entries required in the consolidated financial statements of PPC Investments Limited for 31 December 2020. (10 marks) 4.2) Assume that the independent valuation results were only finalised and available during March 2021. Briefly discuss the effect this will have on the 31 December 2020 financial statements of PPC Investments. (5 marks) QUESTION 4 (15 marks) PPC Investments Limited acquired a 75% investment in ACC Limited on 1 December 2020 for R5 100 000. You can assume that from that date, PPC Investments Limited had control over ACC Limited. The net assets, excluding a building, of ACC Limited had a fair value of R5 200 000. The building had a remaining useful life of 10 years and a carrying amount of R1 250 000. PPC Limited required an independent valuation of the building owned by ACC Limited, which indicated a fair value of R1 500 000. ACC Limited did not account for the fair value of the building The non-controlling interest at the acquisition date is measured at its fair value of R1 700 000. PPC Investments Limited recognised the equity investment in ACC Limited in its separate records using the cost price method. PPC Investments Limited has a 31 December year-end. REQUIRED: 4.1) Prepare the pro-forma journal entries required in the consolidated financial statements of PPC Investments Limited for 31 December 2020. (10 marks) 4.2) Assume that the independent valuation results were only finalised and available during March 2021. Briefly discuss the effect this will have on the 31 December 2020 financial statements of PPC Investments