Black Ltd Acquired 75 % of White Ltd on 1

Multiple Choice

Black Ltd acquired 75 % of White Ltd on 1 January 20X1 by paying $5 000 000 cash.At that date, the equity section of White Ltd's balance sheet was as follows:
$\begin{array}{llcc}&\$\\ \text {Share capital } &1000000 \\ \text { Retained profits} &3000000\\ \text { Asset revaluation reserve } &500000\\\end{array}$


All assets and liabilities were recorded at their fair values.During May 20X1 White Ltd paid a total dividend of $1 000 000 out of profits earned before 1 January 20X1.AASB 127.38A was not operational.
What would be the balance of the account 'Investment in White Ltd' at 30 June 20X1?

A) $5 000 000
B) $4 000 000
C) $4 250 000
D) $2 125 000