Question 2 [30 marks] Given below are the Statement of Financial Position of Blue Lagoon Bhd. (BLB) and its subsidiary Pinky Pie Sdn. Bhd. (PPSB) as at 31 December 2021 (current financial year): Statement of Financial Position as at 31 December 2021 Pinky Pie Sdn. Bhd Blue Lagoon Bhd. RM RM PPE (net) 380,000 135,000 Investment in Pinky Pie Bhd of 100,000 240,000 0 ordinary shares Current assets 340.000 200,000 960,000 335.000 Current liabilities Share capital Reserves Retained earnings 450,000 90,000 350,000 150,000 110,000 55,000 50,000 40.000 960.000 335.000 Additional information: 1. BLB acquires 75% of the issued share capital of PPSB on 31 December 2021 for RM240,000 cash. On the date of acquisition: 2. i. ii. iii. iv. Fair value of PPE in PPSB was RM160,000. No adjustment had been made for this. Assume deferred tax on revaluation surplus at 25%. Capital reserves and retained earnings of PPSB were RM40,000 and RM15,000, respectively. Non-controlling interest is valued at its proportionate share of the identifiable nett assets. It is not credited with its share of goodwill. Non-controlling interest is valued at fair value at the date of acquisition to RM80,000.