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    Question

    Parent Ltd. acquires 75% of Subsidiary Ltd. on 1 July

    2024. Subsidiary’s profit for the year ended 31 March 2025 is ₹16,00,000, earned evenly. Calculate pre-acquisition and post-acquisition profits and the parent’s share in post-acquisition profits.
    A Pre ₹4L; Post ₹11L; Parent’s share ₹9L Correct Answer Incorrect Answer
    B Pre ₹4L; Post ₹12L; Parent’s share ₹9L Correct Answer Incorrect Answer
    C Pre ₹8L; Post ₹8L; Parent’s share ₹6L Correct Answer Incorrect Answer
    D Pre ₹6L; Post ₹10L; Parent’s share ₹7.5L Correct Answer Incorrect Answer
    E None Correct Answer Incorrect Answer

    Solution

    • Pre-acquisition: 3 months (Apr–Jun) = 3/12 × 16L = ₹4L. • Post-acquisition: ₹12L. • Parent’s share = 75% × ₹12L = ₹9L.

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