Rhino Limited acquired a 60% interest in Nala Limited on 1 January 2017. At the date of the acquisition of the investment in Nala Limited, the equipment of Nala Limited was undervalued and thus the group accountant of Rhino Limited Group recognised a revaluation surplus for consolidation purposes of R46 800 (after tax). No revaluations have been recorded by the subsidiary. The remaining useful life was 10 years on 1 January 2017.

On 31 December 2018 the equipment was disposed of and the subsidiary recorded a profit of R16 000. The equipment was not sold for more than its original cost.

The corporate tax rate is 28% and capital gains are taxed at 80% of the corporate tax rate.

The "Other income" line-item in the consolidated financial statements of the Rhino Limited Group for the year ended 31 December 2018 should be calculated as follows:

100% of parents other income + 100% of subsidiarys other income and the following:

	a.	Reduce "Other income" with R46 800
	b.	Reduce "Other income" with R48 247
	c.	Reduce "Other income" with R60 309
	d.	Reduce "Other income" with R52 000
	e.	Reduce "Other income" with R65 000