Bussiness Combination

SIR,

THIS IS A KAPLAN QESTION NO 385
BUSSINESS COMBIANATION QUESTION
THE REQUIRMENT JUST ENDED WITH FINDING SOPL BUT THERE WAS NOT EVEN A SINGLE QUESTION
TO FIND;- the treatment in sofp for unrealized profit(if the subsidary is the seller
plus when there is goods in transit when subsidary despacthes the goods to parent

please help me with the 1st one

1.LAUREL ACCUIRED 60% OF RAKEWOOD
Laurel had traded with Rakewood for many years before the acquisition. Sales from
Rakewood to Laurel throughout the year ended 30 September 20X6 were
consistently $1.2m per month. Rakewood made a mark-up on cost of 20% on these
sales. Laurel had $1.8m of these goods in inventory as at 30 September 20X6.

I understood this senario which is vice versa to the question above
385 kaplan DARGENT co

The inventory of Latree Co includes goods bought from Dargent Co for $2.1m.

2.Dargent Co applies a consistent mark-up on cost of 40% when arriving at its selling
prices.
On 28 March 20X6, Dargent Co despatched goods to Latree Co with a selling price of
$700,000. These were not received by Latree Co until after the year-end, and so
have not been included in the above inventory at 31 March 20X6.
At 31 March 20X6, Dargent Co’s records showed a receivable due from Latree Co of
$3m. This differed to the equivalent payable in Latree Co’s records due to the goods
in transit.
The intra-group reconciliation should be achieved by assuming that Latree Co had
received the goods in transit before the year-end

please help me with the 1st one

THANKS