IAS 28 Investments in Associates and Joint Ventures

**Section A** AeroSpace acquired 30% of the equity shares of OrbitTech on 1 January 20X5 for $4 million, giving it significant influence. For the year ended 31 December 20X5, OrbitTech reported a profit after tax of $1.5 million and paid a total dividend of $500,000. During the year, AeroSpace sold goods to OrbitTech for $800,000, making a markup of 25%. Half of these goods remained in OrbitTech's inventory at year-end. What is the carrying amount of the investment in associate in AeroSpace's Consolidated Statement of Financial Position as at 31 December 20X5?