A Ltd pays $80,000 to acquire 80% of the shares of B Ltd on 1 January 20x4 when B Ltd was incorporated with share capital of $100,000 (comprising 100,000 ordinary shares at $1 each). On 1 January 20x8, when the fair value of B Ltd's identifiable net assets was represented by share capital of $100,000 and retained profit of $50,000 and B Ltd's shares are traded at $3 per share, A Ltd sells 40% of the shares (and retains 40% of the shares) of B Ltd for cash consideration of $120,000. The "Profit on sale of subsidiary" to be reported in A Ltd's consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 20x8 should be:

1. $60,000.
2. $40,000.
3. $80,000.
4. $120,000.
5. None of the listed choices.