TT Bhd acquired 60% interest in the equity capital of DD Bhd on 1 January 2020. The purchased consideration was satisfied as follows:

• An immediate cash payment of RM1,000,000
• An amount of RM5,000,000 to be paid on 1 January 2022
• An issue of 2,000,000 TTs shares issued at its fair value of RM6.00 each.

TTs incremental borrowing cost was 5% per annum.

At the acquisition date, DD Bhd fair value of identifiable net assets is RM10 million (share capital RM7 million, retained earnings RM2 million and revaluation reserve RM1 million). Share price at the time of acquisition is RM1.50. Number of DD Bhd outstanding shares are 7 million units. TT Bhd uses proportionate share of net assets method to measure the non-controlling interest.

Calculate the cost of investment and prepare journal entry to record the acquisition.