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- May 13, 2018 at 4:58 am #451550
Paper June 2013 question (a) CLARION sum
under invt income calculation they have added dividends received and profit or loss $0.5m
i cannot understand from where did they get this amount ????
information that they provided is-
there is an invt which had carrying amt of $1.4m and sold for $1.6m so the profit will be $0.2m and how did they get rest $0.3m as dividends received ????May 13, 2018 at 7:36 am #451579There is no question called Clarion in June 2013!
May 13, 2018 at 7:39 am #451582Could it have something to do with the last sentence in point (iv) in the question (June 2015!)
“Investment income in the trial balance above includes the profit on the sale of the investment and dividends received during the year.”
May 13, 2018 at 11:22 am #451633Yes June 2015* sorry
How did they get $0.5m ???May 13, 2018 at 11:44 am #451642It’s in the trial balance in the question, second figure up in the credit column, opposite the narrative “Investment income (note (iv))”
OK?
May 13, 2018 at 3:57 pm #451672Am so sorry I did not c but why did they ignore this calculation carrying amount of $1.4m and and sold for $1.6m =$ 0.2m vl b profit this amount they have not considered any where
May 13, 2018 at 4:42 pm #451684What do you mean ” they ignore this calculation carrying amount of $1.4m and and sold for $1.6m =$ 0.2m”
It’s there in working (iii) 300 dividends + 200 profit on sale + 500 gain in fair value = 1,000
OK?
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