On 1 July 2018 Kerry Ltd acquired a 30% interest in Ken Ltd for consideration of $87,600. At that date the equity of Ken Ltd consisted of:

Share Capital 168,000

Retained Earnings 84,000

Asset Revaluation Surplus 14,400

TOTAL = 266,400

All assets and liabilities of Ken Ltd are recorded at fair value with the exception of inventory which was held at $6,000 below its fair value. The entire inventory was sold during the 2018-2019 financial year.

The following amounts represent the profit/(loss), dividends paid and asset revaluation surplus (ARS) balance by Ken Ltd since acquisition:

Year ending Year ending 30/6/2019 30/6/2020 Profit /(Loss) after tax 38,400 (24,000) Dividend paid 14,400 8,400 ARS Balance 21,600 31,200