QUESTION 5 Large Parent Ltd acquired 70% of the equity in Sub Ltd on 1 April 2006. At that date, the equity of Sub Ltd was comprised of Share capital of $4 500 and Retained earnings of $ 2.300. Sub Ltd uses the cost model for its property, plant and equipment (PPE). On the 1 April 2006: - the fair value of the PPE was $490 greater than the cost. - there was a contingent liability of $96. The general ledger balances for the year ended 31 March 2022 are provided below. Large Parent Ltd Sub Ltd Income statement/dividend items: S S Income (all types) 14.700 10 200 Less: Expenses (all types) 8 200 5750 Profit before tax 6 500 4450 Less: Income tax expense 2425 1 200 Profit after tax 4075 3.250 Retained earnings-opening balance 6.000 3 800 Less: Dividends declared 3.000 2500 Balance Sheet items: Retained earnings-closing balance 7075 4550 Share capital 10 250 4 500 Various liabilities 17 925 3115 Loan payable to Parent Ltd 1250 Interest payable to Parent Ltd Total equity and liabilities 15 $35 250 $13 430 Various current assets Inventory Interest receivable PPE Loan receivable 2785 1000 600 430 15 25 000 12000 1250 Investment in Sub Ltd Total assets 5 600 $35 250 $13 430