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Question: Nero Ltd purchased a 30% per cent shareholding in Bianco Ltd on 1 January 20X8 for $180000. Bianco Ltd's assets recorded at fair values
Question:Nero Ltd purchased a 30% per cent shareholding in Bianco Ltd on 1 January 20X8 for $180000. Bianco Ltd's assets recorded at fair values and its owners' equity, totalling $520 000, was represented as follows:
Share capital $260000
Reserves $120000
Retained profits $100000
Asset revaluation reserve $40000
During July 20X8, Bianco Ltd paid an interim dividend of $18000. At 31 December 20X8, Bianco Ltd reported:
Profit for 20X8 $48000
Final dividend payable $14000
A transfer to the general reserve $10000
Increase of the asset revaluation reserve to $70000
The equity carrying amount of the investment in Bianco Ltd at 31 December 20X8 is:
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