R bought 80% of S on 1 April 20X1. Each company had revenue of $100,000 for the year ended 31 December 20X1.
Sales accrued evenly over the year.
Consolidated revenue for the year ended 31 December 20X1 will be: $________
The correct answer is: $175,000.
You should bring in 9/12 of S's revenue as it has been controlled for 9 months of the year.
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