The parent acquired 75% of the ordinary shares of Sub with acquired control. The summarized statement of profit or loss of the two companies for the year ending February 29, 2020, is given below. Sub sold goods to Parent for $8000. It had bought these goods for $6000. 40% of these goods rem ainine3d in Parent's inventory on February 29, 2020. Prepared consolidated statement of profit and loss in a suitable form at Parent Sub Sales 87,000 (54,000) 33,000 (13,500) 19,500 45,000 Cost of Sales Gross Profit Operating Expenses Profit before tax Income tax expense Profit for the year (19,000) 26,000 (9,800) 16,200 4,536 5,460 14,040 11,664

The parent acquired 75% of the ordinary shares of Sub with acquired control. The summarized statement of profit or loss of the two companies for the year ending February 29, 2020, is given below. Sub sold goods to Parent for $8000. It had bought these goods for $6000. 40% of these goods rem ainine3d in Parent's inventory on February 29, 2020. Prepared consolidated statement of profit and loss in a suitable form at Parent Sub Sales 87,000 (54,000) 33,000 (13,500) 19,500 45,000 Cost of Sales Gross Profit Operating Expenses Profit before tax Income tax expense Profit for the year (19,000) 26,000 (9,800) 16,200 4,536 5,460 14,040 11,664

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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