QUESTION TWO 25 MARKS CASE STUDY READ THE CASE STUDY AND ANSWER THE QUESTIONS THAT FOLLOW: r The following are the condensed statements of changes in equity of Pink Ltd and its subsidiary, | Grey Ltd, for the year ended 31 December 2023 Extract from the statement of changes in equity for the year ended 31 December 2023 Retained earnings Pink Ltd Grey Ltd Balance at 1 January 2023 200 000 (50 000) Changes in equity for 2023 Total comprehensive income for the year: Profit for the year 100 000 80 000 Balance at 31 December 2023 300 000 30 000 Pink Ltd purchased 80% of the issued shares of Grey Ltd on 1 January 2019 for R80 000. At 1 January 2019 the owners' interest of Grey Ltd was as follows: Share capital (300 000 R300 000 Shares) Accumulated Loss (R200 000) s Atthat date the owners' interest of Pink Ltd was as follows: Share capital R100 000 (100 000Shares) Retained earnings R50 000 Pink Ltd recognised the equity investment in Grey Ltd in its separate records using the cost price method. + Pink Ltd elected to measure the non-controlling interest in the acquiree at their proportionate share of the acquiree's identifiable net assets at the acquisition date. Required: (25 Marks) 2.1 Prepare the analysis of owners' equity for Grey Ltd for the year ended 2023 | 9 | r 2.2 Prepare the consolidated Statement of Profit or Loss and other comprehensive ' 8 | income for the year ended 31 December 2023 for the Group. | [23 Prepare the consolidated Statement of Changes in Equity for the year ended 31 8 | December 2023 | QUESTION THREE (25 Marks) Acer Ltd acquired 65% (and joint control) in GAAP Limited on 1 July 20.4 for R60 000. The equity of GAAP Ltd was as follows at the acquisition dates: GAAP Ltd Share Capital 120000 Revaluation Surplus Land - Retained Income 30 000 Abridged trial balances at 30 June 20.6 4 Acer Ltd GAAP Ltd R R DR/(Cr) Dr/(Cr) Share Capital (100 000) (120 000) Revaluation Surplus Land (20 000) - Retained earnings 1/7/2005 (400 000) (38 000) Profit after tax (160 000) (56 000) Dividend declared and paid 100 000 12 000 Land and buildings 320000 90 000 Investments in GAAP Ltd (65% interest) 120000 - Other Investments 76 000 - Inventory 124 000 44 000 Accounts receivable 30000 20000 Bank 4000 86 000 Accounts payable (94 000) - Group financial statements are prepared by equity accounting investments in joint ventures. REQUIRED: Prepare the group statement of comprehensive income for the year ended 30 June 20.6 and the group statement of financial position at 30 June 20.6