(0 marks) Question B2 [Total 20 marks] Texcado Ltd acquired 21,000 of the ordinary shares of Defar Ltd five years ago, paying 60,000 cash. On the date of acquisition Defar Ltd.'s retained earnings stood at 10,000. The statements of financial position of Texcado Ltd and Defar Ltd as at 31 July 2017 are given below: Texcado Defar Ltd Ltd ASSETS Non-current assets Property, plant and equipment 50,000 20,000 Investment in Defar Ltd 60,000 Current assets Inventories Trade receivables Cash at bank 25,000 20,000 20,000 15,000 5,000 15,000 50,000 50,000 160,000 70,000 Total assets EQUITY AND LIABILITIES Equity Ordinary share capital (1 shares) 80,000 30,000 Retained earnings 50,000 25,000 130,000 55.000 Current liabilities Trade payables 30,000 15,000 Total equity and liabilities 160,000 70,000