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 $2300. 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 5.750 Profit before tax 6 500 4 450 Less: Income tax expense 2 425 1 200 Profit after tax 4 075 3.250 Retained earnings opening balance 6 000 3 800 Less: Dividends declared 3.000 2.500 Balance Sheet items: Retained earnings - closing balance 7 075 4 550 Share capital 10 250 4 500 Various liabilities 17 925 3 115 Loan payable to Parent Ltd 1.250 Interest payable to Parent Ltd 15 Total equity and liabilities $35 250 $13 430 Various current assets 2 785 1000 Inventory 600 430 Interest receivable 15 PPE 25.000 12.000 Loan receivable 1 250 Investment in Sub Ltd 5 600 Total assets $35 250 $13 430