37 uit of On 1 January 2020, Fun Ltd acquired 60% of the ordinary voting shares of Plex Ltd for a cash payment of $1,000,000 At the date of acquisition, the fair value of Plex Ltd's identifiable assets and liabilities are represented by Share capital $200,000 Retained profits 1.1.20 $600,000 The trial balances of Fun Ltd and Plex Ltd at 31 December 2020 (one year after acquisition) are shown below: Fun Ltd Plex Ltd DR CR DR CR $ $ $ $ 1,000,000 200,000 Share capital Retained profits 1.1.20 1.920,000 600,000 Cash at bank 600,000 1,180,000 360,000 360,000 1,600,000 800,000 Inventory plant and equipment Accumulated depreciation Investment in Plex Ltd Accounts payable 700,000 300,000 1,000,000 400,000 1,180,000 Sales revenue 1,800,000 1,600,000 A 12-08 2021/8/20 Cash at bank 1,180,000 360,000 Inventory plant and equipment Accumulated depreciation 600,000 360,000 800,000 1,600,000 700,000 300,000 Investment in Plex Ltd 1,000,000 Accounts payable 400,000 1,180,000 Sales revenue 1,800,000 1,600,000 Cost of sales 1,200,000 1,520,000 160,000 Depreciation expense 120,000 Assume there has been no intragroup transactions between Fun Ltd and Plex Ltd since the acquisition date. Ignore income taxes in your calculations. The group income statement will disclose profit attributable to the shareholders of Fun Ltd equal to: O a $ 400,000 O b. $ 288,000 Oc$3,400,000 Sales revenue 1,800,000 1,600,000 Cost of sales Depreciation expense 1,520,000 160,000 1,200,000 120,000 Assume there has been no intragroup transactions between Fun Ltd and Plex Ltd since the acquisition date, Ignore income taxes in your calculations. The group income statement will disclose profit attributable to the shareholders of Fun Ltd equal to: O a $ 400,000 O b. $ 288,000 Oc. $3,400,000 Od $ 280,000 Oe. $ 1400,000 Next page s page Site Map integrity Copyright & Disclaimer Accessibility Privacy Content & Social Media Disclaimer