H Ltd acquired 25% of the equity voting shares of S Ltd on 1 January 2004. The total equity voting shares consisted of 1,000,000 shares of £1 each nominal value. The price paid by H Ltd was £2 per share. On 1 January 2004, there was a credit balance of £356,000 on the reserves of S Ltd. The retained earnings of S Ltd on 31 December 2004 were £424,000. Which of the following figures would appear in the consolidated statement of financial position on 31 December 2004 in respect of the investment in S Ltd? 

1. a. £924,000 
2. 
   
3. b. £568,000 
4. 
   
5. c. £500,000 
6. 
   
7. d. £517,000

Answer rating: 100% (QA)

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