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Alpha bought all the ordinary shares in Beta on 1 January 20X3. The income statements of the 1 for the year ending 31 December 203
Alpha bought all the ordinary shares in Beta on 1 January 20X3. The income statements of the 1 for the year ending 31 December 203 included the following Alpha's turnover included sales to Beta of 600,000 at a price based on a mark-up of 3331% on cost. Beta's stock at 31 December 203 included 120,000 of goods bought from Alpha. Turnover and cost of sales disclosed in Alpha Group's consolidated income statement for the year ending 31 December 203 will be: a. Turnover is 6,915,000; Cost of sales is 4,670,000 b. Turnover is 7,515,000; Cost of sales is 4,640,000 c. Turnover is 6,915,000; Cost of sales is 5,270,000
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