Question: Nero Ltd purchased a 30% per cent shareholding in Bianco Ltd on 1 January 20X8 for $180 000. Bianco Ltd's assets recorded at fair values and its owners' equity, totalling $520 000, was represented as follows:
Share capital $260 000
Reserves $120 000
Retained profits $100 000
Asset revaluation reserve $40 000
During July 20X8, Bianco Ltd paid an interim dividend of $18 000. At 31 December 20X8, Bianco Ltd reported:
Profit for 20X8 $48 000
Final dividend payable $14 000
A transfer to the general reserve $10 000
Increase of the asset revaluation reserve to $70 000
Calculate the equity carrying amount of the investment in Bianco Ltd at 31 December 20X8.