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Ford Limited acquired a 15% share in Telsa Limited for $89 000. Ford Limited has...

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Accounting

Ford Limited acquired a 15% share in Telsa Limited for $89 000. Ford Limited has no other investments. At the date on which it became an associate, Telsa had the following equity: share capital $200 000 retained earnings $40 000. At the end of the financial year following the investment, Tesla Limited generated a profit after tax of $40 000. After applying the equity method of accounting, Ford will have which of the following carrying amounts for the investment?

Select one:

$6 000

$91 200

$95 000

$89 000

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