Fish Ltd Acquired an 80 Per Cent Interest in Chips

Multiple Choice

Fish Ltd acquired an 80 per cent interest in Chips Ltd on 1 July 2013 for a cash consideration of $838 000.At that date the fair value of the net assets of Chips Ltd was represented by: $$\begin{array} { | l | r | } \hline \text { Share capital } & 560000 \\\hline \text { Asset revaluation reserve } & 90000 \\\hline \text { Retained earnings } & \underline{360000} \\\hline & \underline{1010000} \\\hline\end{array}$$ On 30 June 2015 Fish Ltd sold all its shares in Chips Ltd for $950 000.At this date the fair value of the net assets of Chips Ltd was represented by:
$$\begin{array} { | l | r | } \hline \text { Share capital } & 560000 \\\hline \text { Asset revaluation reserve } & 120000 \\\hline \text { Retained earnings } & \underline { 490000 } \\\hline & \underline { 1170000 } \\\hline\end{array}$$ The retained earnings of $490 000 includes operating profit after tax of $90 000 from the current period.Impairment of goodwill was assessed at $6000.The investment has not been marked to market during the period that the shares were held.What is the amount of profit or loss on the sale of the shares recognised in the books of Fish Ltd during the period ended 30 June 2015?

A) $14 000
B) $112 000
C) $20 000
D) $118 000