(i) At the date of acquisition, Strata Co-produced a draft statement of profit or loss which showed it had made a net loss for the year of $2 million at that date. Paradigm Co accepted this figure as the basis for calculating the pre-and post-acquisition split of Strata Co’s profit for the year ended 31 March 20X3.
I don’t understand how they have calculated the total loss as 10K for Strata & why?. please help.
strata as per draft 4000? add back before purchase loss: 6000? total 10 K