Incredibles of holding company 12500 is included for such goods which has been purchased from subsidiary company and which has not been sold. The subsidiary company send goods after adding 25% on its cost. The holding company purchase 3/4 share of subsidiary company. the share of holding company is unrealised profit will be?

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Answer

Calculation of Unrealized Profit for Holding Company 12500:

Cost of Goods Purchased by Holding Company:
The holding company purchased goods from the subsidiary company at a price that included a 25% markup on the cost. Let's assume the cost price of the goods is x.
The subsidiary company sold the goods to the holding company at a price of 1.25x.

Percentage of Shares Held by Holding Company:
The holding company purchased 3/4 (or 75%) shares of the subsidiary company.

Calculation of Unrealized Profit:
To calculate the unrealized profit for the holding company, we need to determine the profit that the subsidiary company made on the goods sold to the holding company.
Let's assume the cost price of the goods purchased by the holding company is $100.
The subsidiary company sold the goods to the holding company at a price of $125 (1.25 * 100).
The profit made by the subsidiary company on these goods is $25 (125 - 100).

Unrealized Profit for Holding Company:
Since the holding company owns 75% shares of the subsidiary company, it is entitled to 75% of the profit made by the subsidiary company on the goods sold to the holding company.
Therefore, the unrealized profit for the holding company would be $25 * 75% = $18.75.

By following these calculations, the holding company 12500's share of the unrealized profit from the goods purchased from the subsidiary company would be $18.75.

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