+ The following are the statements of comprehensive income for Chucky Bhd and Annabelle Sdn Bhd for year ended 31 December 2021: www.www Chucky (RM'000) Annabelle (RM'000) www Sales (-) Cost of sales Gross profit (-) Operating expenses (+) Other income Profit before taxation 9,500 3,200 (4,800) (1,400) 4,700 1,800 (1,600) (700) 300 3,400 1,100 (-) Taxation (900) (200) Profit after taxation 2,500 900 Retained earnings as at 1 January 2021 5,900 1,800 Dividends declared in December 2021 Ordinary shares - Preference shares Additional information: 800 300 80 20 20 + 1. 2. 3. Chucky acquired 60% of the RM10 million ordinary shares and 25% of RM400,000 of preference shares issued by Annabelle on 1 January 2021. The bargain purchase upon acquisition was determined to be RM700,000. This gain has not been recorded. On the date of acquisition, machinery belonging to Annabelle has a fair value of RM100,000 less than the carrying value. The useful life of the machinery was estimated to be 5 years. The group depreciates on a straight line basis. There are no other reserves on this date. During the year Chucky, sold to Annabelle an equipment with the carrying value of RM60,000 for RM80,000 recording the gain made as part of other income. The equipment was estimated to have a useful life of 5 years. Full depreciation is charged in the year of acquisition and none in the year of disposal.