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Set out below are the draft income statements of Ali and its subsidiary company Farap for the year ended 31 December 2020. On 1 January
Set out below are the draft income statements of Ali and its subsidiary company Farap for the year ended 31 December 2020. On 1 January 2019 Ali purchased 90% ordinary shares in Saran at a cost of RM270,000. The issued share capital of Faran is 200,000 RM1 ordinary shares. At that date the income statement of Faran showed a credit balance of RM50,000. Ali Revenue Cost of sales Gross Profit Operating Cost Operating Profit Interest Payable Profit before tax Tax Net profit RM 000 750 (510) 240 (85) 155 Earan RM 000 450 (290) 160 (58) 102 98 155 (55) 100 (25) 73 Following information is relevant: During the year Faran sold goods to Ali for RM30,000, making a markup of 30%. Only 70% of these goods were sold before the end of the year, the rest were still in inventory. Required: Prepare consolidated statement of comprehensive income as at 31 December 2020. (15 marks
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