Question Two ER acquired 80% of the 1 million R1 equity shares of MW on 1 January 2020 when MW's retained earnings were R1,050,000. The consideration for the acquisition consisted of R400,000 cash paid on the acquisition date and the transfer of 500,000 R1 equity shares in ER with a fair value of R4.00 each at the acquisition date. The non-controlling interest in MW was measured at its fair value of R560,000 at the date of acquisition. On 1 January 2020 the carrying value of MW's net assets was considered to be the same as their fair value with the following exceptions: Leasehold property with a carrying value of R1,200,000 had a fair value of R1,320,000 and an estimated useful life of 5 years from the date of acquisition. ER depreciates property, plant and equipment on a straight line basis. A contingent liability, which had a fair value of R180,000 at the date of acquisition, had a fair value of R60,000 at 31 December 2021. This contingent liability is not reflected in the individual financial statements of MW. The retained earnings reported in the financial statements of ER and MW as at 31 December 2021 were R7,900,000 and R1,400,000 respectively. An impairment of 10% was recorded in ER's group financial statements as at 31 December 2020. An impairment review performed on 31 December 2021 indicated that goodwill on the acquisition of MW had been further impaired by 20% of its carrying value at that date. ER has no other subsidiaries. Required: Calculate the amounts that will be included in the consolidated statement of financial position of the ER group as at 31 December 2021 for: (a) goodwill; (b) retained earnings; and (c) non-controlling interest. Total for Question Two 10 marks