On 1 July 2017, Pyramids Co. purchased 30% of the ordinary shares of Aswan Co. for £14,000. On the date of acquisition,

[answerhappygod]

On 1 July 2017, Pyramids Co. purchased 30% of the ordinary
shares of Aswan Co. for £14,000. On the date of acquisition, Aswan
Co. had retained earnings of £5,000. The statements of financial
position of Pyramids Co. and Aswan Co. for 30 June 2019 is as
follows:
Statements of financial position at 30 June 2019
Pyramids Co. £ Aswan
Co. £
Assets
Non-current
Assets Property, plant and equipment

102,000
31,000
Investment in Aswan


14,000

-
116,000
31,000
Current Assets



45,000
8,000
Total Assets



161,000
39,000
Equity and Liabilities
Equity
Share Capital



60,000
7,000
Retained earnings



78,000
25,000
138,000
32,000
Liabilities
Current liabilities



23,000
7,000
161,000
39,000
Additional information:
1. During the year ended 30 June 2019, Pyramids Co. sold
inventories to Aswan Co. of a cost £25,000 marked-up at 25%. Of
this inventory, 20% has been sold to a third party by 30 June
2019.
2. During 2019, Investment in associate is tested for impairment
and it is decided that investment in associate impairment loss is
£2,500. The cumulative investment in associate impairment loss at
30 June 2018 was £3,000.
Required: 1. Calculate the following balances only:
a) Investment in Associate
b) Pyramids Group Retained Earnings.