Ford Limited acquired a 20% share in Telsa Limited for $89 000. Ford Limited has no other investments. At the date on which it became an associate, Telsa had the following equity:

share capital $300 000

retained earnings $140 000.

At the end of the financial year following the investment, Telsa Limited generated a profit after tax of $40 000. After applying the equity method of accounting, Ford will have which of the following carrying amounts for the investment?

Select one:

$89 000

$91 200

$97 000

$6 000