DARLING Corporation At the beginning of the current year, DARLING Corporation acquired a 40% interest in an investee at a cost of 5,000,000. The equity of the investee on the date of acquisition was 3,400,000- consisting of 5,000,000 share capital and 2,400,000 retained earnings. All the identiable assets and liabilities of the investee were recorded at fair value except for an equipment with a fair value of 4,000,000 greater than the carrying amount. The remaining useful life of the equipment is 4 years. At year-end, DARLING also had inventory costing 3,000,000 on hand which had been purchased from the same investee. A prot of F20,000 had been made on the sale. During the current year, the investee reported net income of 6,000,000 and paid dividend of 3,200,000. The equity of the investee and DARLING at year-end showed the following: Investee DARLING Share capital o,000,000 12,000,000 Retained earnings 4,200,000 3,000,000 Retained earnlngs 1,000,000 ' approprlated Revaluation surplus 2,500,000 ?,200,000 The revaluation surplus of Investee arose from revaluation of land made at the end of the current year. The retained earnings appropriated arose from a transfer of unappropriated retained earnings for contingencies