Vella Bhd acquired 75% ordinary shares of Tiktok Bhd on 1 January 2010 at a bargain purchase of RM3 million. The fair value of Tiktok Bhd at the acquisition date is derived as follows: Ordinary shares Retained profit RM Million 100 23 Vella Bhd and Tiktok Bhd ordinary shares' market value was RM2.30 and RM1.80 each respectively on 1 January 2010 On 1 February 2019, Vella Bhd disposed 20 million ordinary shares in Tiktok Bhd for RM40 million. Vella Bhd and Tiktok Bhd ordinary shares registered market values of RM2.50 and RM2.00 each on 1 February 2019. The retained profit of Tiktok Bhd stood at RM35 million on this date. On 1 March 2019, Vella Bhd disposed another 10 million ordinary shares in Tiktok Bhd at RM1.95 each. The accounting period of the two companies ends at 30 June. On the average, Tiktok Bhd registered RM1 million profits each month for the accounting year ending 30 June 2019. Required: a. Discuss the related consolidation issues when Vella Bhd prepared its Consolidated Profit or Loss and Other Comprehensive Income for 2019. (10 marks) b. Ascertain the profit/loss on disposal of shares on both dates for the group only. (5 marks) Vella Bhd acquired 75% ordinary shares of Tiktok Bhd on 1 January 2010 at a bargain purchase of RM3 million. The fair value of Tiktok Bhd at the acquisition date is derived as follows: Ordinary shares Retained profit RM Million 100 23 Vella Bhd and Tiktok Bhd ordinary shares' market value was RM2.30 and RM1.80 each respectively on 1 January 2010 On 1 February 2019, Vella Bhd disposed 20 million ordinary shares in Tiktok Bhd for RM40 million. Vella Bhd and Tiktok Bhd ordinary shares registered market values of RM2.50 and RM2.00 each on 1 February 2019. The retained profit of Tiktok Bhd stood at RM35 million on this date. On 1 March 2019, Vella Bhd disposed another 10 million ordinary shares in Tiktok Bhd at RM1.95 each. The accounting period of the two companies ends at 30 June. On the average, Tiktok Bhd registered RM1 million profits each month for the accounting year ending 30 June 2019. Required: a. Discuss the related consolidation issues when Vella Bhd prepared its Consolidated Profit or Loss and Other Comprehensive Income for 2019. (10 marks) b. Ascertain the profit/loss on disposal of shares on both dates for the group only