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PROB 5-2 (PAS 27) The Knight Co. acquired an 80% interest in the Pot Co. when Pot's equity comprised share capital of p100, 000 and

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PROB 5-2 (PAS 27) The Knight Co. acquired an 80% interest in the Pot Co. when Pot's equity comprised share capital of p100, 000 and retained earnings f P500, 000. Pot's current statement of nancial position shows share capital of P100, 000, a revaluation reserve of p400, 000 and retained earnings of P1, 400,000. Under ISA 27, Consolidated and Separate Financial Statements, what figure in respect of Pot's retained earnings should be included in the consolidated statement of financial position? a. 720,000 b. 1,440,000 c. 1,040,000 (1. 1,520,000

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