Black Ltd Acquired an 80 Per Cent Interest in White

Multiple Choice

Black Ltd acquired an 80 per cent interest in White Ltd on 1 July 2013 for a cash consideration of $419 000.At that date the fair value of the net assets of White Ltd was represented by: $$\begin{array} { | l | r | } \hline \text { Share capital } & 280000 \\\hline \text { Asset revaluation reserve } & 45000 \\\hline \text { Retained earnings } & 180000 \\\hline & 505000 \\\hline\end{array}$$ On 30 June 2015 Black Ltd sold all its shares in White Ltd for $475 000.At this date the fair value of the net assets of White Ltd was represented by:
$$\begin{array} { | l | r | } \hline \text { Share capital } & 280000 \\\hline \text { Asset revaluation reserve } & 60000 \\\hline \text { Retained earnings } & 245000 \\\hline & 585000 \\\hline\end{array}$$ The retained earnings of $445 000 includes operating profit after tax of $45 000 from the current period.Impairment of goodwill was assessed at $3000.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 Black Ltd during the period ended 30 June 2015?

A) $59 000
B) $10 000
C) $56 000
D) $7000