Part b

On 1 January 2020, ABC Ltd acquired 25% of the ordinary share capital of DEF Ltd at a cost of $1 million. During the year to 31 December 2020, DEF Ltd made a profit after tax of $84,000 and paid the ordinary dividend of $54,000.

Required:

Calculate the amount of `investment in associate' (DEF Ltd) shown in the group financial statement of ABC Group for the year ended 31 December 2020 under the `Equity method.