Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P Ltd acquired 90% of S Ltd in January 20x1 when the retained profits of P Ltd and S Ltd were respectively $200 million and

P Ltd acquired 90% of S Ltd in January 20x1 when the "retained profits" of P Ltd and S Ltd were respectively $200 million and $100 million. For the year ended 31 December 20x8, the "profit after tax" of P Ltd and S Ltd were respectively $50 million and $20 million. As at 31 December 20x8, the "retained profits" of P Ltd and S Ltd were respectively $600 million and $300 million. There were no inter-company transactions. In the 20x8 consolidated financial statements, the "Profit after tax attributable to shareholders of the parent" and the "Group retained profits" should be respectively:

Group of answer choices

  1. $68 million and $580 million.
  2. $70 million and $870 million.
  3. $70 million and $770 million.
  4. $68 million and $780 million.
  5. None of the listed choices.

Which option is it?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

6th edition

978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163

Students also viewed these Accounting questions