ABC owns 30% of MELY, which it purchased on 1 January 20X7 for $5,000,000. At that date, MELY had retained earnings of $10,600,000. At the year end date of 31 December 20X1, MELY had retained earnings of $12,800,000 after paying out a dividend of $2,000,000. On 30 November 20X1, ABC sold $1,400,000 original cost of goods to MELY, on which it made 30% profit. MELY had resold none of these goods by 31 December 20X1. ABC equity accounted its only associate MELY. The "investment in associate" in ABC consolidated statement of financial position as at 31 December 20x1 will report: (PLEASE EXPLAIN THE ANSWER) A) $5,660,000 B) $4,934,000 C) $5,534,000 D) $5,240,000 E) None of the above

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.