Waec Model Questions Vol1 2021 Financial Accounting Question 29
Practice objective / multiple choice question 29 from the 2021 Waec Model Questions Vol1 Financial Accounting examination.
Parent company P acquired 80% of subsidiary S for ₦560,000. At the acquisition date the fair value of S's net identifiable assets was ₦500,000. During the year S reported profit before tax of ₦120,000 and tax expense of ₦30,000 and paid a dividend of ₦20,000 (of which P received its 80% share). P also sold goods to S for ₦50,000 costing P ₦30,000; the goods were still in S's ending inventory. Determine the consolidated profit after tax for the group, eliminating the inter‑company profit.
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About This Question
This is Waec Model Questions Vol1 2021 Financial Accounting Question 29. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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