At the end of 19X5, a parent company, P plc, with one subsidiary had a holding representing 10 per cent of the equity of R Ltd, a clothing company. It had cost \(£ 80,000\) when purchased at the start of \(19 \mathrm{X} 4\). At the time of that investment, R Ltd had net assets of \(£ 560,000\) which increased to \(£ 840,000\) by the end of that year. At the start of the current year, the investment was increased by a further 11 per cent of the equity at a cost of \(£ 110,000\).

(a) How would the investment be shown in the financial statements if it were treated as a trade investment?

(b) How would the investment be shown in the financial statements if it were treated as an associated undertaking?