Sydney Ltd purchased 20% of the shares in Melbourne Ltd on 1 July 2019 for $250,000. During the year Melbourne Ltd announced a net profit of $60,000 and declared and paid dividends of $20,000. If Sydney Ltd accounted for the investment in Melbourne Ltd using the cost method how much revenue would Sydney Ltd have recognised due to its investment in Melbourne Ltd for the year ending 30 June 2020.

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A:

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A: a)

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A: Note: It is assume that company preparing their financial account according calendar year.

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A:

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A: Part 1:

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.