I do not follow the way he calculated reserves for Tommy (1126-700)(70%) and for Jimmy (675-550)(48%) in the question.
My problem with these figures is the 1126 and 675. I would have used the retained earnings of tommy and jimmy as per question and adjust for pre-acquisation Retained earnings. Can someone help me.
My problem with these figures is the 1126 and 675. I would have used the retained earnings of tommy and jimmy as per question and adjust for pre-acquisation Retained earnings. Can someone help me.