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