Gce Model Questions Vol1 2018 Financial Accounting Question 9
Practice objective / multiple choice question 9 from the 2018 Gce Model Questions Vol1 Financial Accounting examination.
Parent Co. holds \(80\%\) of the voting shares of Subsidiary Ltd. For the year ended 31 December 2020 the subsidiary reported profit before tax of \(\text{₦}500,000\). Tax expense is \(30\%\) of profit before tax. During the year the subsidiary paid interest of \(\text{₦}15,000\) to the parent on an inter‑company loan. No dividends were paid. Determine the amount of profit attributable to the parent that should be recognised in the consolidated statement of profit and loss for the year.
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About This Question
This is Gce Model Questions Vol1 2018 Financial Accounting Question 9. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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