[Nadir2020]

pradeesh1995 wrote:Hi.
Im a bit confused here.<br>At the date of aquisition Subsidiary’s inventorys book value and fair value were $3 million and $3.6 m respectively.At the reporting date 10% of inventory was not sold.<br>The answer from bpp book guides to deduct 540000(representing inventory sold post aquisition) from post aquisition retained earning. Can anyone explain me the logic or mechanism behind this.

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