Viola Ltd has significant influence over the operations of Drum Ltd from a 18% ownership. Viola Ltd prepares consolidated financial statements. Drum Ltd reported a profit of $5,000,000 and paid a cash dividend from post-acquisition profits of $180,000 to Viola Ltd. What is the difference between the balances of the account Investment in Drum Ltd in Viola Ltds own financial statements when compared with that balance in its consolidated financial statements for this year? The account balance in Viola Group consolidated financial statements would be:

Select one:

higher by $867,600

lower by $720,000

lower by $867,600

higher by $720,000

Urgently needed thankyou