Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / P Ltd acquired 90% of S Ltd in January 20x5 when S Ltd's retained profit was $30 million

P Ltd acquired 90% of S Ltd in January 20x5 when S Ltd's retained profit was $30 million

Accounting

P Ltd acquired 90% of S Ltd in January 20x5 when S Ltd's retained profit was $30 million. For the year ended 31 December 20x8, the "profit after tax" of P Ltd and S Ltd were respectively $20 million and $10 million. As at 31 December 20x8, the "retained profits" of P Ltd and S Ltd were respectively $100 million and $50 million. During the consolidation process, it was learnt that P Ltd sold some goods to S Ltd during 20x7, which S Ltd sold to outsiders during December 20x7 and January 20x8, and it was determined that there was unrealized profit of $2 million as at 31 December 20x7 arising from this inter-company sales. In the 20x8 consolidated financial statements, the "Profit after tax attributable to shareholders of the parent" and the "Group retained profits" should be respectively



-$27 million and $118 million.
-$31 million and $116.2 million.
-$27 million and $116.2 million.
-None of the listed choices.
-$31 million and $118 million.

Which option is it?

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE