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Found this question in the revision kit, i am not quite sure how they got the answer or perhaps the dates are incorrect, its as if the subsidiary was disposed before acquisition, could you assist please
On I January 20X8, Lentil Co acquired all of Chickpea Co’s 100,000 $1 shares for $400,000. The goodwill acquired in the business combination was $60,000, of which 40% had been written off as impaired by 31 December 20X8. On 31 December 20X5 Lentil Co sold all of Chickpea Co’s shares for $680,000 when Chickpea Co had retained earnings of $215,000.
What is the profit on disposal that should be included in the individual entity financial statements of Lentil Co?
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