Twala Limited acquired a 60% interest in Kitso Limited on 1 January 2017. At the date of the acquisition of the investment in Kitso Limited, the land of Kitso Limited was undervalued and thus the group accountant of Twala Limited Group recognised a revaluation surplus for consolidation purposes of R46 560. No revaluations have been recorded by the subsidiary.

During the year ended 31 December 2018 the land was disposed of and the subsidiary recorded a profit of R160 000.

The corporate tax rate is 28% and capital gains are taxed at 80% of the corporate tax rate.

The other income line item in the consolidated financial statements of the Twala Limited Group for the year ended 31 December 2018 should be calculated as follows:

100% of parents other income + 100% of subsidiarys other income and the following:

	a.	Reduce other income with R64 667
	b.	Reduce other income with R36 131
	c.	Reduce other income with R33 523
	d.	Reduce other income with R60 000
	e.	Reduce other income with R46 560