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Alpha Co acquired 90% of the share capital of Beta Co on 1 July 2019. The summarised draft statements of profit or loss for Alpha
Alpha Co acquired 90% of the share capital of Beta Co on 1 July 2019. The summarised draft statements of profit or loss for Alpha Co and Beta Co for the year ended 30 June 2020 are shown below: Alpha Co Beta Co $000 $000 Revenue 15,800 6,400 Cost of sales (7.500) (3.100) Gross profit 8,300 3,300 Operating expenses (2.500) (980) Profit before tax 5,800 2,320 Tax (580) (232) Profit for the year 5,220 2,088 During the year Alpha Co sold goods costing $2,000,000 to Beta Co for $2,800,000. At 30 June 2020, 40% of these goods remained in Beta Co's inventory. Task 1 (9 marks) Prepare the Alpha group consolidated statement of profit or loss for the year ended 30 June 2020 Consolidated statement of profit or loss for Alpha group for the year ended 30 June 2020 $000 Revenue Cost of sales Gross profit Operating expenses Profit before tax Tax Profit for the year Task 2.12 marks) Which of the following formulas describes the amount to be entered in the consolidated statement of profit or loss as Profit attributable to: Non-controlling interest"? a. Beta Co's profit after tax * 10% Beta Co's profit after tax C. Group profit after tax - Profit attributable to equity owners d. Group profit after tax * 10% b. Task 3 What amount should be shown in the consolidated statement of profit or loss for the non-controlling interest /to the nearest $? Task 4 What amount should be shown in the consolidated statement of profit or loss for the profit attributable to equity owners of Alpha Col to the nearest $/
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