On 1 Jan 2024, A Ltd acquired all the outstanding shares of B Ltd when the equity of B Ltd consisted of share capital of $10,000 (10,000 shares) and retained earnings of $8,000. The acquisition was made on a cummulative-dividend basis when B Ltd’s dividend payable was $2,000. Details of the acquisition are as follows. 1. A Ltd paid $14,000 cash by two instalments: $5,575 on 1 Jan 2024 and the remaining in three year’s time. 2. B Ltd’s shareholders received 1 share from A Ltd for every 5 shares they held, or alternatively, $2.62 per share in cash, payable in two year’s time. Holders of 4,000 shares preferred to receive cash. 3. A Ltd’s shares were trading at $3.40 per share on the acquisition date. Due to doubts as to whether the share price of A Ltd could remain at or above the $3.40 level for 6 months, A Ltd agreed to compensate B Ltd the value of any decrease in the share price below $3.40. A Ltd estimated a 25% chance that its share price would fall to $2.80 before 1 July 2024. 4. A Ltd supplied B Ltd a self-developed patent worth $3,000. 5. A Ltd paid $25,000 share issuance costs and $12,000 consulting and brokerage fees in relation to acquisition. 6. B Ltd paid $3,000 in relation to the business combination. 7. The interest rate was 8%. The income tax rate was 30%. Calculate A Ltd’s cost of investment in B Ltd on the acquisition date. (11 marks) (Note: Round the discount factor to 6 decimal places and final answer to the nearest dollar amount.)