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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
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
-$68 million and $580 million.
-$70 million and $870 million.
-$70 million and $770 million.
-$68 million and $780 million.
-None of the listed choices.
Which option is it?
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