Ted Ltd, an ultimate parent reporting entity, holds a 24% interest in the voting shares of Lasso Ltd. Equity accounting is applied to the interest held in Lasso Ltd. Ted Ltd holds no other investments.

Additional information:

In the first year of investment in Lasso Ltd, Lasso Ltd generated profits after tax of $40,000 and paid a dividend of $12,000. At the date of acquisition of the shares in Lasso Ltd, Lasso Ltd owned an item of plant which was recorded at $40,000 less than its fair value. The remaining useful life of the asset at the date of Ted Ltds acquisition of the interest in Lasso Ltd was 5 years. During the second year of operation Lasso Ltd sold some inventory to Ted Ltd at a selling price of $60,000. The cost of the inventory to Lasso Ltd was $30,000. Ted Ltd held 40% of the inventory on hand at the end of the second year.

Required:

a) If Ted Ltd paid $52,000 for the 24% interest in Lasso Ltd, what is the equity accounted value for Ted Ltds investment in Lasso Ltd at the end of the first year?