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Illustration 6 Pacquired 80% of S on 1 July 20X1. S's retained earnings at 31 December 20X1 are $15,000 and S's profit for the year

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Illustration 6 Pacquired 80% of S on 1 July 20X1. S's retained earnings at 31 December 20X1 are $15,000 and S's profit for the year was $8,000. Immediately after acquisition, P made a loan to S of $40,000 which carried interest at 10% What were S's retained earnings at acquisition

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