question archive Fromage purchased 80% of the equity shares in Frais on 1 January 20X1
Fromage purchased 80% of the equity shares in Frais on 1 January 20X1
Subject:AccountingPrice: Bought3
Fromage purchased 80% of the equity shares in Frais on 1 January 20X1. During the year ended 31 December 20X1, Fromage sold inventory to Frais at a sales price of E50,000. None of the goods remained in Frais' inventory. Fromage applied a margin of 20%.
Extracts from the statement of profit or loss for the two entities are shown below:
Fromage Frais question Revenue 1,000 750 Cost of sales (650) (250)
What would be the revenue and cost of sales figures reported in the consolidated statement of profit or loss for the year ended 31 December 20X1?
Answer to the nearest 1000
O a. Revenue 1750 Cost of sales 910
O b. None of these options are correct
O c. Revenue 1700 Cost of sales 850
O d. Revenue 1700 Cost of sales 860
O e. Revenue 1550 Cost of sales 800
