What is the gain on disposal to be recognised in the consolidated statement of profit or loss of KL?

On 1 January 20X1 KL acquired 75% of the equity shares of PQ. Goodwill arising on the acquisition was $480,000. On 31 December 20X3 KL sold the full investment of PQ to XY Group for $2,000,000. On this date the net assets of PQ were $1,340,000 and the non-controlling interests stood at $410,000.

What is the gain on disposal to be recognised in the consolidated statement of profit or loss of KL?
A . $590,000
B . $180,000
C . $660,000
D . $635,000

View Answer

Answer: D