Warriors Limited Acquired a 20% Share in Tomkins Limited for $36

Multiple Choice

Warriors Limited acquired a 20% share in Tomkins Limited for $36 000.Warriors Limited has no other investments.At the date on which it became an associate,Tomkins Limited had the following equity:
- share capital $100 000
- retained earnings $80 000.
At the end of the financial year following the investment,Tomkins Limited generated a profit after tax of $12 000.After applying the equity method of accounting,Warriors Limited will have which of the following carrying amounts for the investment?

A) $38 400
B) $36 000
C) $33 600
D) $18 400