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Exercise 2: The following information is related to the results of Kuwait Finance House (KFH) during the year ended December 31, 2016. The above information

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Exercise 2: The following information is related to the results of Kuwait Finance House (KFH) during the year ended December 31, 2016. The above information is before the distribution of profit to Mudarabah depositors. The agreed profit-sharing ratio between the KFH and Mudarabah depositors is 23 . respectively. Required: A. Prepare KFH income statement for profit distribution between KFH and Mudarbarah depositors based on: 1) Separate investment account method 2) Pooling method B. Which profit distribution method do you think the KFH might prefer? and Why

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