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Calculate the carrying amount in the investment

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Reference no: EM133016198

Question - Love acquired 30% of ordinary shares of Cinta on 1 July 2019 for RM20 million. Since the acquisition date, Love applies equity accounting to account for its investment in Cinta.

On 1 October 2019, Cinta sold one of its plants to Love for RM20 million. The carrying amount of the plant on the disposal date was RM18 million. The group policy is to depreciate plants at 10% on carrying amount.

Additional info:

Retained profit as at 1 January 2019 11

Retained profit for the year 9

Can someone calculate the carrying amount in the investment and its share of profit?

Reference no: EM133016198

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