On 1 April, 2019 IKe purchased 80% of equity shares in Rosemary. On the same date IKe acquired 40% of the 40 million equity shares in Abena paying Ghs2 per share.

The statement of profit or loss for the year ended 30 September 2019 are:

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Revenue Cost of sales (iii) (iv) Gross profit Distribution costs Administrative expenses Investment income (interest and dividends) 8,500 (1,650) Finance costs Profit (loss) before tax Income tax (expense) relief Profit (loss) for the year The following information is relevant: (i) Ike $000 190,000 (116,000) 74,000 (10,200) (16,300) 54,350 (15,000) 39,350 Rosemary $000 130,000 (90,000) 40,000 (5,000) (7,000) (2,000) 26,000 (10,000) 16,000 Abena $000 45,000 (35,000) 10,000 (4,000) (10,000) Nil (4,000) 1,000 (3,000) The fair values of the net assets of Rosemary at the date of acquisition were equal to their carrying amounts with the exception of an item of plant which had a carrying amount of Ghs11 million and a fair value of Ghs 15 million. This plant had a remaining life of five years (straight-line depreciation) at the date of acquisition of Rosemary. All depreciation ischarged to cost of sales. The fair value of the plant has not been reflected in Rosemary's financial statements. No fair value adjustments were required on the acquisition of the investment in Abena. Immediately after its acquisition of Rosemary, Ike invested Ghs45 million in an 7% loan note from Rosemary. All interest accruing to 30 September 2019 has been accounted for by both entities. Rosemary also has other loans in issue at 30 September 2019. Rosemary paid a dividend of Ghs7 million during the year. After the acquisition, Ike sold goods to Rosemary forGhs 13 million on which Ike made a gross profit of 18%. Rosemary had one third of these goods still in its inventory at 30 September 2019. Ike also sold goods to Abena for Ghs4 million, Revenue Cost of sales (iii) (iv) Gross profit Distribution costs Administrative expenses Investment income (interest and dividends) 8,500 (1,650) Finance costs Profit (loss) before tax Income tax (expense) relief Profit (loss) for the year The following information is relevant: (i) Ike $000 190,000 (116,000) 74,000 (10,200) (16,300) 54,350 (15,000) 39,350 Rosemary $000 130,000 (90,000) 40,000 (5,000) (7,000) (2,000) 26,000 (10,000) 16,000 Abena $000 45,000 (35,000) 10,000 (4,000) (10,000) Nil (4,000) 1,000 (3,000) The fair values of the net assets of Rosemary at the date of acquisition were equal to their carrying amounts with the exception of an item of plant which had a carrying amount of Ghs11 million and a fair value of Ghs 15 million. This plant had a remaining life of five years (straight-line depreciation) at the date of acquisition of Rosemary. All depreciation ischarged to cost of sales. The fair value of the plant has not been reflected in Rosemary's financial statements. No fair value adjustments were required on the acquisition of the investment in Abena. Immediately after its acquisition of Rosemary, Ike invested Ghs45 million in an 7% loan note from Rosemary. All interest accruing to 30 September 2019 has been accounted for by both entities. Rosemary also has other loans in issue at 30 September 2019. Rosemary paid a dividend of Ghs7 million during the year. After the acquisition, Ike sold goods to Rosemary forGhs 13 million on which Ike made a gross profit of 18%. Rosemary had one third of these goods still in its inventory at 30 September 2019. Ike also sold goods to Abena for Ghs4 million,

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