morn ltd acquired 90 of the shares in eve ltd on 1 january 20×1 for 90 000 when eve 535052
Morn Ltd acquired 90% of the shares in Eve Ltd on 1 January 20X1 for £90,000 when Eve Ltd”s accumulated profits were £50,000. On 10 January 20X1 Morn Ltd received a dividend of £10,800 from Eve Ltd out of the profits for the year ended 31/12/20X0. On 31/12/20X1 Morn increased its non-current assets by £30,000 on revaluation. The summarized statements of comprehensive income for the year ended 31/12/20X1 were as follows:
|
Morn |
Eve |
|
|
£ |
£ |
|
|
Gross profit |
360,000 |
180,000 |
|
Expenses |
120,000 |
110,000 |
|
240,000 |
70,000 |
|
|
Dividends received from Eve Ltd |
10,800 |
— |
|
Profit before tax |
250,800 |
70,000 |
|
Income tax expense |
69,000 |
18,000 |
|
Profit for the period |
181,800 |
52,000 |
There were no inter-company transactions, other than the dividend. There was no goodwill.
Required:
Prepare a consolidated statement of comprehensive income for the year ended 31 December 20X1.
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