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Warriors Limited acquired a 20% share in Tomkins Limited for $36 000. Warriors Limited has no other investments. At the date on which it became

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Warriors Limited acquired a 20% share in Tomkins Limited for $36 000. Warriors Limited has no other investments. At the date on which it became an associate, Tomkins Limited had the following equity: share capital $100 000 retained earnings $80 000. At the end of the nancial year following the investment, Tomkins Limited generated a prot after tax of $12 000. After applying the equity method of accounting, Warriors Limited will have which of the following carrying amounts for the investment? a. $38 400 (36000 + 0.2(12000)) b. $36 000 c. $33 600 d. $ 18 400

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