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MC Question 10
Patula Co acquired 80% of Sanka Co on 1 October 20X5. At this date, some of Sanka Co’s inventory had a carrying
amount of $600,000 but a fair value of $800,000.
By 31 December 20X5, 70% of this inventory had been sold by Sanka Co.
The individual statements of financial position at 31 December 20X5 for both companies show the following:
| Patula Co | Sanka Co | |
|---|---|---|
| $’000 | $’000 | |
| Inventories | 3,250 | 1,940 |
What will be the total inventories figure in the consolidated statement of financial position of Patula Co as at
31 December 20X5?
A $5,250,000
B $5,330,000
C $5,130,000
D $5,238,000