Hot Plc owns 80% of the issued share capital of Warm Plc and 40% of the issued share capital of Cold Plc. In the individual accounts, the income tax expenses for the year are as follows: 3 Hot Plc GH¢20,000 Warm Plc GH¢18,000 Cold Plc GH¢10,000 At what amount should the income tax expense appear in the consolidated statement of profit or loss? [Note: The share of profit of Associate is shown in the statement of profit or loss at a figure net of tax]
Hot Plc owns 80% of the issued share capital of Warm Plc and 40% of the issued share capital of Cold Plc. In the individual accounts, the income tax expenses for the year are as follows: 3 Hot Plc GH¢20,000 Warm Plc GH¢18,000 Cold Plc GH¢10,000 At what amount should the income tax expense appear in the consolidated statement of profit or loss? [Note: The share of profit of Associate is shown in the statement of profit or loss at a figure net of tax]
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 33P
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Question
Hot Plc owns 80% of the issued share capital of Warm Plc and 40% of the issued share capital
of Cold Plc. In the individual accounts, the income tax expenses for the year are as follows:
3
Hot Plc GH¢20,000
Warm Plc GH¢18,000
Cold Plc GH¢10,000
At what amount should the income tax expense appear in the consolidated statement of profit or
loss?
[Note: The share of profit of Associate is shown in the statement of profit or loss at a figure net of tax]
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