Long has a $70\%$ interest in Short. Their statements of income for the year ended $31$ March $20$x$8$ are reported as follows:

Long

Short

$$

$$

Revenue

$361,300$

$162,500$

Cost of sales

$240,000$

$95,600$

During the year Long has sold goods to Short invoiced at $45,000$ which was cost plus $20\%.$ By the year end, Short had sold one quarter of those goods.

What is the group gross profit to be reported in the consolidated statement of comprehensive income?

Question $5$ Answer

a$.$

$182,575$

b$.$

$185,075$

c$.$

$182,075$

d$.$

$180,075$