Mercedes Co has owned 100% of Benz Co since incorporation. At 31 March 20X9 extracts from their individual statements of financial position were as follows. Mercedes Co Benz Co $ $ Share capital 100,000 50,000 Retained earnings 450,000 120,000 550,000 170,000 During the year ended 31 March 20X9, Benz Co had sold goods to Mercedes Co for $50,000. Mercedes Co still had these goods in inventory at the year end. Benz Co uses a 25% mark up on all goods. What were the consolidated retained earnings of Mercedes Group at 31 March 20X9?

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A: When a domestic corporation distributes a dividend, receiving corporation is taxed on dividend and…

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A: a.

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.