The statement of financial position of J Sdn Bhd and its investee company, P Sdn Bhd as at 31^st December 2020 are shown below:

Assets Non-current Assets Freehold property, plant and equipment Investments Current assets Inventories Trade receivables Cash Equities & Liabilities Equity Share capital (@ RM1 per share) Retained earnings Non-current liabilities 12% debentures Current liabilities Bank overdraft Trade payables

J Sdn Bhd RM 000 2,745 1,000 ------------- 3,745 ------------- 575 830 50 -------------- 1,455 -------------- -------------- 5,200 ======== 2,000 1,460 ------------- 3,460 ------------ 500 560 680 ------------ 1,240 ------------ ------------ 5,200 =======

P Sdn Bhd RM 000 1,625 - ------------- 1,625 ------------- 300 290 120 -------------- 710 -------------- -------------- 2,335 ======== 1,000 885 ------------- 1,885 ------------ 100 - 350 ------------ 350 ------------ ------------ 2,335 =======

The following information are relevant:

(i) (ii) (iii) (iv) (v)

J Sdn Bhd acquire 600,000 ordinary shares in P Sdn Bhd on 1 January 2015 for RM 1 million when the accumulated earnings of P Sdn Bhd were RM200,000 At the date of acquisition of P Sdn Bhd, the fair value of its freehold property was considered to be RM 400,000 greater than its value in P Sdn Bhds statement of financial position. P Sdn Bhd has acquired the property on 1 January 2005 and the buildings element (comprising 50% of the total value) is depreciated on cost over 50 years. P Sdn Bhd manufactures a component used by J Sdn Bhd only. Transfers are made by P Sdn Bhd at cost plus 25%. J Sdn Bhd held RM100,000 of these components in inventories at 31 December 2020. It is the policy of J Sdn Bhd to review goodwill for impairment annually. The goodwill in P Sdn Bhd was written-off in full some years ago. It is the groups policy to value the non-controlling interest at acquisition at fair value. The market price of the shares of the non-controlling shareholders just before the acquisition was RM1.65

Required:

(a)	Explain to the Management of J Sdn Bhd what is a bargain purchase and under what circumstances that it may occur.
(b)	Compute the goodwill amount that arises from the acquisition of P Sdn Bhd as at 31 December 2020
(c)	Calculate the non-controlling interest balance as at 31 December 2020
(d)	Prepare the Consolidated Statement of Financial Position of the J Sdn Bhd group as at 31 December 2020. All relevant supporting workings have to be shown.