А. E273,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Andrew acquired 80% of the equity shares of
Alpha on 1 January 2015 when Alpha's retained
earnings were £100,000. During the year ended
31 December 2015, Alpha purchased goods
from Andrew totaling £160,000. At 31 December
2015, 25% of these goods were still in the
inventory of Alpha. Andrew applies a mark-up
on cost of 25% to all of its sales. At 31 December
2015, the retained earnings of Andrew and
Alpha were £225,000 and £170,000
respectively.
What would be the amount of retained earnings
in Andrew's consolidated statement of financial
position as at 31 December 2015?
А.
£273,000
В.
£271,000.
С.
£249,000.
D.
None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7f208d33-833d-4e26-a968-105dcc276b2a%2F086b58f6-a5ad-494e-834b-9407d4ca4c93%2Flx7efj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Andrew acquired 80% of the equity shares of
Alpha on 1 January 2015 when Alpha's retained
earnings were £100,000. During the year ended
31 December 2015, Alpha purchased goods
from Andrew totaling £160,000. At 31 December
2015, 25% of these goods were still in the
inventory of Alpha. Andrew applies a mark-up
on cost of 25% to all of its sales. At 31 December
2015, the retained earnings of Andrew and
Alpha were £225,000 and £170,000
respectively.
What would be the amount of retained earnings
in Andrew's consolidated statement of financial
position as at 31 December 2015?
А.
£273,000
В.
£271,000.
С.
£249,000.
D.
None of the above
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