The individual Statements of financial position of the parent and the subsidiary, as at 31 December 2012, report their retained earnings as £540,000 and £297,000 respectively. The profit after tax in the year ended 31 December 2012 was £124,000 for the parent and £96,000 for the subsidiary. Parent acquired two-thirds of the equity in the subsidiary on 1 January 2010 when the subsidiary’s retained earnings were £120,000. Assume that no dividends were declared or paid by either company in the year 2012. In the Consolidated Statement of changes in equity for the year ended 31 December 2012:

(a) What would be the balance b/f from previous years for the parent?

(b) What would be the balance b/f from previous years for the subsidiary?

(c) What would be the current year’s profit for the subsidiary?

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x £540,000 y £664,000 z £416,000