The following trial balances were obtained from the financial records of two entities in the food industry, namely Crab Ltd ('Crab') and Shrimp Ltd ('Shrimp'), for the financial year ended 28 February 2023: Abridged Trial balances Crab Ltd (R) Shrimp Ltd (R) DR CR DR CR Ordinary Share capital (R1 1 000 000 500 000 each) Retained earnings: 1 March 2022 Ordinary dividends declared Trade and other payables Vehicles (at carrying value) Machinery (at carrying value) Trade and other receivables Inventory Investment in Shrimp Ltd (at cost) Deferred tax Shareholders for dividends - ordinary Summary of P/L accounts: Profit after tax 918 600 1 473 000 400 000 200 000 215 000 145 000 2 475 000 2 360 000 760 000 355 000 888 800 576 000 245 000 123 000 806 400 89 600 400 000 200 000 5 575 200 2 952 000 5 575 200 1 296 000 3 614 000 3 614 000 1. Acquisition of Shrimp On 1 March 2021, Crab acquired 60% of the ordinary share capital of Shrimp from a third party in cash and thereby obtained control over Shrimp. At acquisition date, Shrimp's equity comprised of ordinary share capital of R500 000 and retained earnings of R765 000. At acquisition, all the assets and liabilities of Shrimp were considered to be fairly valued except for the following: