QUESTION On 1 May 2020, Genius Bhd acquired shares in Brilliant Bhd for business diversification On the date of acquisition, the retained profits and general reserves of Brilliant Bhd wer RM290,000 and RM357,500 respectively. Given below are the Statements of Financia Position of both companies as at 30 April 2022: Genius Bhd RM Brilliant Bhd RM Non-current assets: Land (cost) Building (carrying value) Motor vehicle (carrying value) 4,030,000 3,027,500 3,075,000 1,530,000 400,000 293,000 Investment in Brilliant Bhd: 1,875,000 ordinary shares at cost 3,000,000 270,000 8% preference shares at cost 270,000 Current assets: Inventories 594,800 182,000 Trade receivables 270,500 138,000 Loan Receivable - Brilliant Bhd 30,000 Bills receivable 134,500 52,000 Cash at bank 159,600 56,000 Preference dividend receivable 21,600 11,986,000 5,278,500 Equity and Reserves Ordinary shares 4,000,000 2,500,000 10% preference shares 1,500,000 8% preference shares 900,000 General reserves 2,105,000 955,000 Retained profits 3,943,000 625,000 Current liabilities: Trade payables 167,500 158,000 Bills payable 69,000 43,500 Loan Payable - Genius Bhd 25,000 Preference dividend payable 150,000 72,000 Ordinary dividend payable 51,500 11,986,000 5,278,500