C Limited is a stock broking firm in the business of buying and selling shares on the JSE (Johannesburg Securities Exchange) on behalf of its clients and on its own behalf. On 1 December 2015, C Limited bought, on its own account, 10 000 shares of D Limited when the market price was R40. The share price of D Limited rose drastically to R60 and on 31 March 2016, C Limited sold 5 000 of the D Limited shares.

Assuming that the year-end of C Limited is 31 March each year and that the corporate tax rate is 28% for 2016 and that only 70% of capital gains are taxable, answer the questions that follow:

What amount will be recorded on the statement of financial position as investment in D Limited (financial asset) as at 31 March 2016?

Select one:

a. R600 000

b. R200 000

c. R400 000

d. R300 000