Question No 3 please, thanks

2 BAC305/05 Part A (40 marks) All 10 questions are compulsory and must be attempted. Each question contributes 4 marks. 1. During the last three years Abey Berhad Co has held 300,000 ordinary shares in Bamee Berhad. The issued share capital of Bamee Berhad is 1,000,000 shares totalling RM500,000. The finance director of Abey Berhad is a director of Bamee Berhad Explain how the investment in Bamee Berhad should be treated in the consolidated financial statements of Abey Berhad. 2. Explain whether a subsidiary needs to prepare accounts to the same date as the parent company. 3. Public Berhad transferred a machine to 75% owned subsidiary Queen Berhad on 1 May 2018 for RM500,000. The carrying amount of the machine on 1 May 2018 was RM400,000, and on this date the asset was estimated to have four years of useful life left. Prepare the journal entries in respect of the transfer. Explain the consolidation adjustment needed for unrealised profit arisen from trading of goods. 5. Public Berhad owns 75% of the equity shares in Bell Berhad. At 31 July 2018, the inventory of Public Berhad was valued at RM420,000 and included goods costing RM60,000 that it had purchased from Bell at cost plus 20% mark up. At 31 July 2018, inventories were valued at RM445,000 in the consolidated statement of financial position of the Public Group. At 31 July 2018, provide the inventory figure in the statement of financial position of Bell 6. Public Berhad owns 75% of the ordinary share capital of its subsidiary Willy Berhad. At the group's year end, 28 February 2019, Public Berhad's payables include RM3,600 in respect of inventories sold to it by Willy Berhad. Williy Berhad's receivables include RM6,700 in respect of inventories sold to Public Berhad. Two days before the year end Public Berhad sent a payment of RM3,100 to Willy Berhad that was not recorded by the latter until 2 days after the year end. Calculate the in-transit item should be dealt with in the consolidated statement of financial position at 28 February 2019. ...3/