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Three years ago, Purity Company paid $36 million in order to acquire 80% interest of Sweet Company. On 1 January 2021, it decided that the ownership interest should be reduced to 20%. Accordingly, the cost of investment was decreased to $9 million. With regard to the disposal of 60% interest in Sweet Company, Purity Company obtained $15 million from those investors who purchased the said interest. The fair value of the 20% investment on 1 January 2021 was $8 million. The post-acquisition profit of Sweet Company was $5 million. Required: Compute re-measurement gain/loss for the retained investment. a. b. Compute gain/loss on the sale of 60% investment which should appear on the separate financial statement of Purity Company. C. Compute gain/loss on the sale of 60% investment which should appear on the consolidated financial statement. d. Prepare consolidation adjustment entry in the year when control in Sweet Company was lost. Three years ago, Purity Company paid $36 million in order to acquire 80% interest of Sweet Company. On 1 January 2021, it decided that the ownership interest should be reduced to 20%. Accordingly, the cost of investment was decreased to $9 million. With regard to the disposal of 60% interest in Sweet Company, Purity Company obtained $15 million from those investors who purchased the said interest. The fair value of the 20% investment on 1 January 2021 was $8 million. The post-acquisition profit of Sweet Company was $5 million. Required: Compute re-measurement gain/loss for the retained investment. a. b. Compute gain/loss on the sale of 60% investment which should appear on the separate financial statement of Purity Company. C. Compute gain/loss on the sale of 60% investment which should appear on the consolidated financial statement. d. Prepare consolidation adjustment entry in the year when control in Sweet Company was lost

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