Required: a. Calculate the goodwill or bargain purchase arising from the acquisitions in Mahang Bhd, Karangan Bhd and Dublin Bhd.

b. Calculate the gain or loss on the disposal of ordinary shares in Mahang Bhd.

c. Prepare the Consolidated Statements of Profit or Loss of Kulim Bhd group for the year ended 31 December 2021.

d. Prepare the Consolidated Statement of Changes in Equity of Kulim Bhd group for the year ended 31 December 2021 (showing Group Retained Earnings and Non- Controlling Interest column only)

e. Prepare the Consolidated Statement of Financial Position of Kulim Bhd group as at 31 December 2021.

Kulim Bhd was incorporated inany years ago primarily to undertake construction of highway and related businesses. Over the years, it has become a conglomerate with diverse business interests conducted through members of its group of companies namely Mahang Bhd, Karangan Bhd and Dublin Bhd. The followings are the financial statements of the companies for the financial year ending 31 December 2021. Statements of Profit or Loss for the year ended 31 December 2021 Kulim Bhd Statement of Changes in Equity for the year ended 31 December 2021 Mahang Bhd Statement of Changes in Equity for the year ended 31 December 2021 Karangan Bhd Statement of Changes in Equity for the year ended 31 December 2021 Dublin Bhd Statement of Changes in Equity for the year ended 31 December 2021 Statements of Financial Position as at 31 December 2021 Dividend payables \begin{tabular}{|r|r|r|r|} 500 & 900 & 500 & 600 \\ \hline \end{tabular} TOTAL \begin{tabular}{|c|r|r|r|} \hline 218,800 & 123,000 & 125,720 & 90,600 \\ \hline \end{tabular} Additional information: 1. Acquisition of companies The following is the summary of the acquisitions of the shares by Kulim Bhd in Mahang Bhd, Karangan Bhd and Dublin Bhd: 2. Revaluations a. On the acquisition date, a plant of Mahang Bhd was revalued from RM10.5 million to RM9 million only. The plant was acquired in 2018. b. On 1 December 2021, the land of Kulim Bhd was revalued from RM8.8 million to RM9.5 million. All revaluations were still not recorded in the respective company's accounts. 3. Inter-companies transactions a. In 2021, Kulim Bhd sold on credit goods worth RM1.8 million to Karangan Bhd. Karangan Bhd has sold one-quarter of the total goods purchased. Karangan Bhd has paid only 55% to Kulim Bhd as of 31 December 2021 . b. During the months of September 2021 to December 2021 , Kulim Bhd sold goods RM100,000 every month to Dublin Bhd. 50% of these goods still remain unsold in Dublin Bhd at the end of the year 2021. c. Bills receivables of Karangan Bhd were due from Kulim Bhd. d. Mahang Bhd disposed to Karangan Bhd a machine in December 2020. The gain on the disposal of the machine was RM100,000. The machine was purchased by Mahang Bhd in January 2018 at RM500,000. 4. Other issues a. In 2020, Kulim Bhd discovered that a piece of land of Mahang Bhd was recognised as "Property, Plant \& Equipment". The land was purchased by Mahang Bhd a year before at RM2 million and currently has no specific future use. b. Kulim Bhd, Mahang Bhd and Karangan Bhd have provided the preference share's dividend, while Dublin Bhd has provided the ordinary share dividend. Kulim Bhd had recognized its shares from its associate as investment income but has yet to record dividends from its subsidiaries. c. Goodwill on the acquisition of Mahang Bhd was impaired by RM200,000 in the acquisition year and a further RM100,000 was impaired for the year ended 31 December 2021. 5. Selected accounting policies. a. Depreciation. Method selected: the straight line and charged on yearly basis. Useful life: Plant-12 years; building-20 years; machine-5 years. Land was not depreciated. b. Valuation of Non-Controlling Interest (NCl). The partial goodwill method. c. Margin on inter-companies sales of goods. 20% Inargin. d. Measurement subsequent to initial recognition. The group adopts the revaluation model for its Property, Plant \& Equipment and Intangibles. e. Assumption. All profits or losses are deemed to accrue evenly throughout the years. Kulim Bhd was incorporated inany years ago primarily to undertake construction of highway and related businesses. Over the years, it has become a conglomerate with diverse business interests conducted through members of its group of companies namely Mahang Bhd, Karangan Bhd and Dublin Bhd. The followings are the financial statements of the companies for the financial year ending 31 December 2021. Statements of Profit or Loss for the year ended 31 December 2021 Kulim Bhd Statement of Changes in Equity for the year ended 31 December 2021 Mahang Bhd Statement of Changes in Equity for the year ended 31 December 2021 Karangan Bhd Statement of Changes in Equity for the year ended 31 December 2021 Dublin Bhd Statement of Changes in Equity for the year ended 31 December 2021 Statements of Financial Position as at 31 December 2021 Dividend payables \begin{tabular}{|r|r|r|r|} 500 & 900 & 500 & 600 \\ \hline \end{tabular} TOTAL \begin{tabular}{|c|r|r|r|} \hline 218,800 & 123,000 & 125,720 & 90,600 \\ \hline \end{tabular} Additional information: 1. Acquisition of companies The following is the summary of the acquisitions of the shares by Kulim Bhd in Mahang Bhd, Karangan Bhd and Dublin Bhd: 2. Revaluations a. On the acquisition date, a plant of Mahang Bhd was revalued from RM10.5 million to RM9 million only. The plant was acquired in 2018. b. On 1 December 2021, the land of Kulim Bhd was revalued from RM8.8 million to RM9.5 million. All revaluations were still not recorded in the respective company's accounts. 3. Inter-companies transactions a. In 2021, Kulim Bhd sold on credit goods worth RM1.8 million to Karangan Bhd. Karangan Bhd has sold one-quarter of the total goods purchased. Karangan Bhd has paid only 55% to Kulim Bhd as of 31 December 2021 . b. During the months of September 2021 to December 2021 , Kulim Bhd sold goods RM100,000 every month to Dublin Bhd. 50% of these goods still remain unsold in Dublin Bhd at the end of the year 2021. c. Bills receivables of Karangan Bhd were due from Kulim Bhd. d. Mahang Bhd disposed to Karangan Bhd a machine in December 2020. The gain on the disposal of the machine was RM100,000. The machine was purchased by Mahang Bhd in January 2018 at RM500,000. 4. Other issues a. In 2020, Kulim Bhd discovered that a piece of land of Mahang Bhd was recognised as "Property, Plant \& Equipment". The land was purchased by Mahang Bhd a year before at RM2 million and currently has no specific future use. b. Kulim Bhd, Mahang Bhd and Karangan Bhd have provided the preference share's dividend, while Dublin Bhd has provided the ordinary share dividend. Kulim Bhd had recognized its shares from its associate as investment income but has yet to record dividends from its subsidiaries. c. Goodwill on the acquisition of Mahang Bhd was impaired by RM200,000 in the acquisition year and a further RM100,000 was impaired for the year ended 31 December 2021. 5. Selected accounting policies. a. Depreciation. Method selected: the straight line and charged on yearly basis. Useful life: Plant-12 years; building-20 years; machine-5 years. Land was not depreciated. b. Valuation of Non-Controlling Interest (NCl). The partial goodwill method. c. Margin on inter-companies sales of goods. 20% Inargin. d. Measurement subsequent to initial recognition. The group adopts the revaluation model for its Property, Plant \& Equipment and Intangibles. e. Assumption. All profits or losses are deemed to accrue evenly throughout the years