Reference no: EM132958138

Question - A Bhd acquired 60% interest in B Bhd for a cash consideration of RM210,000 on 31 December 20X6. At that date B Bhd's net assets are represented by share capital of RM100,000 revaluation reserve of RM100,000 and retained profit of RM100,000. The excess payment is for goodwill. A Bhd has adopted MFRS 3 in 20X6. In 20X7, there is goodwill impairment loss of RM8,000. ii. In April 20X7, A Bhd sold a piece of machinery (which was carried at its book at cost of RM60,000 less accumulated depreciation RM30,000) to B Bhd for RM40,000. The machinery has a remaining useful life of 5 years. The group adopts a policy to depreciate depreciable assets using straight line method over 10 years, and to provide for a full year's depreciation if the asset has been used for more than 6 months during the year. iii. During the year 20X7, B Bhd sold goods to A Bhd at cost plus 20%. The total intragroup sale for the year is RM100,000. The unrealised intragroup profit in the closing stock as at 31 December 20X7 is RM10,000. iv. During the year 20x7, both A Bhd and B Bhd revalued their respective land. What the dividends are paid out of current year profit?