Argentina owns an 80% share of Messi which it purchased 6 months ago. The information below...

 

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Argentina owns an 80% share of Messi which it purchased 6 months ago. The information below relates to Messi at the date of acquisition. The income statements for both are: Revenue Cost of Sales Gross Profit Operating Costs Finance Costs Profit Before Tax Tax Profit for the year Argentina 8000 -4000 4000 -1500 -1000 1500 -700 800 Messi 3000 -1000 2000 -1500 -200 300 -100 200 Other information I. Argentina sold goods to Messi after the acquisition at a margin of 40% and worth $100m. Half of these goods have been sold on by Messi by the year end. II. The fair value of Messi's net assets were equal to their book value at the date of acquisition, with the exception of some machinery which had a fair value of 200 above it's book value. Produce a consolidated Income Statement for the Argentina group. Argentina owns an 80% share of Messi which it purchased 6 months ago. The information below relates to Messi at the date of acquisition. The income statements for both are: Revenue Cost of Sales Gross Profit Operating Costs Finance Costs Profit Before Tax Tax Profit for the year Argentina 8000 -4000 4000 -1500 -1000 1500 -700 800 Messi 3000 -1000 2000 -1500 -200 300 -100 200 Other information I. Argentina sold goods to Messi after the acquisition at a margin of 40% and worth $100m. Half of these goods have been sold on by Messi by the year end. II. The fair value of Messi's net assets were equal to their book value at the date of acquisition, with the exception of some machinery which had a fair value of 200 above it's book value. Produce a consolidated Income Statement for the Argentina group.

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