Question: Facts
A acquires 25% of the voting shares of B on January 1, 20X5. The purchase consideration was $10 million, and A has significant influence over B. The retained earnings of B were $15 million at the date of acquisition, and the A group has several other subsidiaries. The retained earnings of B at December 31,20X5, were $21 million.
Required: Calculate the carrying value of the investment in B in the group financial statements at December 31, 20X5.