Fromage purchased 80% of the equity shares in Frais on 1 January 20X1. During the year ended 31 December 20X1, Fromage sold inventory to Frais at a sales price of 50,000. All of the goods remained in Frais inventory. Fromage applied a margin of 20%.

Extracts from the statement of profit or loss for the two entities are shown below:

	Fromage	Frais
	000	000
Revenue	1,000	750
Cost of sales	(650)	(250)

What would be the revenue and cost of sales figures reported in the consolidated statement of profit or loss for the year ended 31 December 20X1?

Answer to the nearest 000

a.

Revenue 1700 Cost of sales 840

b.

None of these options are correct

c.

Revenue 1700 Cost of sales 860

d.

Revenue 1550 Cost of sales 800

e.

Revenue 1750 Cost of sales 910