There are FOUR (4) questions in this paper. Answer ALL questions in the Answer Booklet. Question 1 Mr. Queen Manufacturing Bhd. (MQMB) purchased 45,000 shares of Akmal Frozen Foods Sdn. Bhd. (AFFSB) at RM4.00 per share on 1 January 2020. At acquisition date, the total number of shares that AFFSB has were 100,000 shares. 

The purchased was financed through internal cash. The net assets of AFFSB at acquisition date is RM300,000. After the purchased, MQMB's management classified AFFSB as one of their subsidiaries due to having controlling interest in AFFSB. On the same date MQMB purchased15%shares of Qilah Dimsum Sdn. Bhd. (QDSB) at an open market value at RM80,000. MQMB intends to hold the shares for long term investment. As at 31 December 2020, QDSB shares increased to RM150,000. MQMB's year end is 31 December 2020 . 

Required: 

a) Draw a diagram that illustrate MQMB's group structure. (2 marks) 

b) Outline THREE (3) instances that MQMB will not be having controlling interest in AFFSB. 

c) Calculate the goodwill that MQMB will recognize in their book. 

d) Advise MQMB on the accounting treatments for the purchase of QDSB's shares at year end.

Answer rating: 100% (QA)

Step 12 aThe diagram Is In the explanation box b 1 MQMB has only 45 and does not qualify as controll... View the full answer