On 1 July 20X3,Heroic Ltd Acquired a 30% Interest in Manfred

On 1 July 20X3,Heroic Ltd acquired a 30% interest in Manfred Ltd,and the power to exert significant influence over that company,for a cash consideration of $2 000 000.At the date of acquisition,the net assets of Manfred Ltd approximated fair value.At respective dates,the shareholders' equity of Manfred Ltd was as follows (amounts in thousands) : $\begin{array}{lrr}&30 \text { June } & 30 \text { June } \\&20X3 & 20X8\\\text { Shareholders' equity }\\\text { Share capital } & \$ 2000 & \$ 2000 \\\text { Retained earnings } & 3000 & 2000\\\text { Total shareholders' equity }&\$5000&\$4000\end{array}$ Other information
I.Heroic Ltd was not a parent entity
II.At 30 June 20X7,Heroic Ltd had held inventories that had been supplied by Manfred Ltd at a markup of $50 000.The income tax rate was 30%.
III.Due to worsening operating difficulties in Manfred Ltd,at 30 June 20X8,the recoverable amount of the investment was estimated to be $1 200 000.
In the balance sheet of Heroic Ltd at 30 June 20X8,the carrying amount of the investment in Manfred Ltd would be:

A) $1 700 000.
B) $1 200 000.
C) $1 215 000.
D) none of the above.