The Following Consolidation Adjusting Journal Entries Appeared at the End

question 17

Multiple Choice

The following consolidation adjusting journal entries appeared at the end of a period in which the parent sold all of its shareholding in a subsidiary. It received $1,200,000 for the shares.

The 'Cr Profit after tax' entry above represents:

• A) the profit made by the parent on the sale of the shares.
• B) the profit made by the economic entity on the sale of the shares.
• C) the amount accruing to the minority interest of the subsidiary.
• D) the share of profits derived by the subsidiary for the entire current period.
• E) the share of profits derived by the subsidiary in the current period, up to the time of divestment.

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