Prepare a consolidated statement of comprehensive income for

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Reference no: EM131404345

The statements of financial position of Mars plc and Jupiter plc at 31 December 20X2 are as follows:

 

$

$

Sales

200,000

120,000

Cost of sales

60,000

60,000

Gross profit

140,000

60,000

Expenses

59,082

40,000

Dividends received

3,750

NIL

Profit before tax

84,668

20,000

Income tax expense

14,004

6,000

 

70,664

14,000

Surplus on revaluation

25,000

Total comprehensive income

95,664

14,000


Red Ltd acquired 75% of the shares in Pink Ltd on 1 January 20X0 when Pink Ltd"s retained earnings were $30,000 and the balance on Pink"s general reser ve was $8,000. The fair value of the non-controlling interest at the date was £32,000. Non-controlling interests are to be measured using method 2.

On 31 December 20X2 Red revalued its non-current assets. The revaluation surplus of £25,000 was credited to the revaluation reserve.

During the year Pink sold Red goods for $9,000 plus a mark-up of one-third. Half of these goods were still in inventor y at the end of the year.

Goodwill suffered an impairment loss of 20%.

Required:

Prepare a consolidated statement of comprehensive income for the year ended 31/12/20X2

Reference no: EM131404345

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