the same date, and thereby obtained significant influence over the financial and operating policy decisions of MobiFix in accordance with IAS 28 Investments in Associates and Joint Ventures. All MobiFixs assets and liabilities were fairly valued on 1 April 2021. There was no gain on bargain purchase on this acquisition. 5.3. Transactions during the year From 1 June 2022, Sky began supplying steel to MobiFix which it used when repairing its customers agricultural equipment. Sky sold the steel to MobiFix at a 35% mark-up on cost. The inventory balance on hand on 28 February 2023 in MobiFixs separate financial statements relating to steel purchases from Sky, was R760 000. 6. Extracts of separate financial statements and dividend declarations The following amounts from each entitys separate financial statements within the Sky group, which are correct in all respects and includes the effects of all transactions noted above, have been provided to you:

Sky - (1 March 2022 Retained earnings =R8 700 ) (Profit for the period (FY2023) = R 6 580 )

AB Steel -(1 March 2022 Retained earnings =R 6 228) (Profit for the period (FY2023) = R 5 588)

Farmy -(1 March 2022 Retained earnings =R 3 450)( Profit for the period (FY2023) = R2 450)

MobiFix- (1 March 2022 Retained earnings =R2053)( Profit for the period (FY2023) =R 1 650)

AB Steel declared a dividend of R950 000 on 24 February 2023. This dividend was subsequently paid on 31 March 2023. Sky declared and paid a dividend of R350 000 on 26 February 2023, while Farmy and MobiFix did not declare or pay any dividends in FY2023.

7. Additional information Unless otherwise stated in the scenario: All profits for FY2023 were earned evenly. An interest rate of 9% per annum before tax (compounded annually) applies. All items of property, plant and equipment are accounted for on the cost model in accordance with IAS 16 Property, Plant and Equipment by all entities in the Sky group. Buildings and equipment are depreciated on a straight-line basis. Assume that an income tax rate of 28% and a capital gains inclusion rate of 80% have always applied.