Question 2: (25 Marks) a. Briefly explain how 'intra-group' transactions are treated in investments in associates. (3 marks) Eff Date: 17-05-2021 b. Slater Co. owns 35% of Maple Co.'s shares. The following information is provided: i. For the year ended 30th June 2021, Maple Co. made a net profit of $3m. ii. Maple Co. charges a margin of 25% on all sales. iii. During the year, Maple Co. sold goods worth $1.2m to Slater Co, but VA remain unsold. A plant is depreciated by $50,000 during the year. iv. Required: Calculate the associate's share of the profit. (7 marks) c. An insurance broker called Wealthy Insure had issued 1,500,000 equity shares on 19 January 2021. On the 31st of March 2021, the company further issued 250, 000 equity shares at full market price. During the course of the same year, on the 14 of June 2021, the company decided to make a rights issue of one (1) for every five (5) shares held at a price of P3 per share. When the market had closed on the last day before the issue, the fair value of the shares had been P4.50. QP-ASR-001 Rev 000 The last issue of the year was made on the 30th of September 2021. This was a bonus issue of one (1) for every fifteen (15) shares currently held. A profit of P670,000 was made by Wealthy Insure during the year 2021. For the year ended 31st December 2020, the reported EPS for the company had been 41.8t. Required: Calculate the EPS for Wealthy Insure for the year ended 319 December 2019. Restate the EPS for the year ended 31st December 2020. (15 marks)