The owners of ASPRO Sdn Bhd and ASPIA Sdn Bhd decided to combine their business in which a new company named ASPRO ASPIA Bhd was formed to take over the businesses of both companies from 1 January 2020. Below are their balance of accounts as at 31 December 2019.

Balance of accounts as at 31 December 2019

	ASPRO (RM)	ASPIA (RM)
Property, plant and equipment	400,000	600,000
Investment property	200,000	100,000
Cash	40,000	10,000
Trade receivables	100,000	60,000
Inventories	60,000	50,000
Total assets	800,000	820,000
Ordinary shares	600,000	400,000
Retained profit	100,000	140,000
Bank loan	70,000	200,000
Trade payables	30,000	80,000
Total equities and liabilities	800,000	820,000

ASPRO ASPIA Bhd took over all the asset and liabilities of ASPRO Sdn Bhd and ASPIA Sdn Bhd. The assets were taken over at the following fair values:

ASSETS	ASPRO(RM)	ASPIA (RM)
Property, plant and equipment	420,000	640,000
Investment property	200,000	100,000
Trade receivables	90,000	60,000
Inventories	70,000	55,000

The consideration were 687,500 unit of shares to ASPRO Sdn Bhd and 500,000 unit of shares to ASPIA Sdn Bhd, discharged with the issuance of fully paid ordinary shares in ASPRO ASPIA Bhd at RM1.20 per share.

Required:

(a) Determine the type of business combination applied in the above situation. Explain your answer.

(5 marks)

(b) Show the detail calculation of the amount of goodwill by companies and in total.

10. marks)

(c) Prepare the statement of financial position of ASPRO ASPIA Bhd as at 1 January 2020.

(10 marks)