White Pearl Proprietary Limited acquired 20 000 shares in Jolly Roger Proprietary Limited on 30 April 2012. The shares were acquired at R15 per share and transaction costs of R1 000 were paid. The shares were classified as at fair value with gains and losses recognized in profit and loss.

White Pearl Proprietary Limited has a 31 March year-end.

The following transactions occurred during the 2020 financial year:

At 31 March 2019 the shares were recognized at a total value of R430 000.

On 1 July 2019 Jolly Roger Proprietary Limited decided to issue capitalization shares of 1 new share for every 50 shares held.

On 31 January 2020 White Pearl Proprietary sold 5 000 of the shares held in Jolly Roger Proprietary Limited. The shares were sold for R23.90 per share.

The Jolly Roger Proprietary Limited shares traded at R23 each at 31 March 2020.

Jolly Roger Proprietary Limited did not declare any dividends during the 2020 year.

Required:

a.) Calculate and disclose the carrying amount of the non-current investment that should be recognized in the statement of financial position of White Pearl Proprietary Limited at 31 March 2020. Make sure to show all calculations. (6 marks)

b.) Calculate and disclose the fair value adjustment, relating to the investment, to be recognized in the statement of comprehensive income of White Pearl Proprietary Limited for the year ended 31 March 2020. Make sure to show all calculations. (14 marks)