On 1 August

2025, Mudiwa Ltd acquired 80% of the ordinary shares in Rudo Ltd for R600,000.

The financial year-end for both companies is 31 December 2025.

The equity of Rudo Ltd on 1 January 2025

(start of the year) was as follows:

• Share capital: R300 000
• Retained earnings: R180 000
• Revaluation surplus: R40 000

On 1 August

2025 (acquisition date), a fair value adjustment was made to increase the value

of land by R50 000. This adjustment has not been recorded in Rudo Ltd’s

accounting records.

For the

year ended 31 December 2025, Rudo Ltd reported a profit after tax of R120 000,

which is assumed to have been earned evenly throughout the year. Mudiwa Ltd 's retained earnings before Dividend amounted to R275 000.

Both companies declared and paid dividends

during the year.

• Mudiwa Ltd declared dividends of R50 000.

• Rudo Ltd declared dividends of R30 000 on 30 November 2025, after

  the acquisition.

Assume no goodwill impairment and each

ordinary share carries equal voting rights.

REQUIRED: