Answer Happy

35 Points Question 1 Orton Plc has owned 80% of the share capital of Tucker Plc for many years. Retained earnings of Tucker Plc for the year end 31st December 2020 are £2,800,000. Orton Plc bought 35% of the share capital of Cooper Plc on 1st January 2020 at cost of £2,300,000. Cooper has made a profit for the year ended 31st Dec 2020 of £1,000,000 and has sold goods to Orton Plc during the year with a sales value of £360,000. All sales were at a margin of 20% and half of them remain in year-end inventories. Orton Plc has retained earnings at 31st December 2020 of £4,500,000. Complete the statements below by filling in the blanks: The amount of investment in Cooper to be shown in the consolidated statement of financial position for the year ended 31 December is £ Blank 1. The share of profits of Cooper to be shown in the consolidated statement of profit or loss for the year ended 31 December 2020 is £ Blank 2. To calculate the group retained earnings the following amounts needs to be included. Parent RE E Blank 3; Parent share of subsidiary post acquisition RE E Blank 4; parent share of associates post acquisition RE E Blank 5 and any adjustments £ Blank 6. Group retained earnings to be shown in the consolidated statement of financial position is £ Blank 7.