Gunawan Limited acquired a 20% share in Juliano Limited for €18 000. Gunawan Limited has no other investments. At the date on which it became an associate, Juliano Limited had the following equity:
$\bullet$Share capital €50 000
$\bullet$Retained earnings €40 000
At the end of the financial year following the investment, Juliano Limited generated a profit of €6000. After applying the equity method of accounting, Gunawan Limited will have the following carrying amount for the investment:

Question

Gunawan Limited acquired a 20% share in Juliano Limited for €18 000. Gunawan Limited has no other investments. At the date on which it became an associate, Juliano Limited had the following equity: 
$\bullet$Share capital €50 000
$\bullet$Retained earnings €40 000
At the end of the financial year following the investment, Juliano Limited generated a profit of €6000. After applying the equity method of accounting, Gunawan Limited will have the following carrying amount for the investment:

Quizplus · Accepted Answer

The Answer of Gunawan Limited acquired a 20% share in Juliano Limited for €18 000. Gunawan Limited has no other investments. At the date on which it became an associate, Juliano Limited had the following equity: 
$\bullet$Share capital €50 000
$\bullet$Retained earnings €40 000
At the end of the financial year following the investment, Juliano Limited generated a profit of €6000. After applying the equity method of accounting, Gunawan Limited will have the following carrying amount for the investment:

Gunawan Limited Acquired a 20% Share in Juliano Limited for €18