Step Acquisition

Hello,

What is the double entry for group profit or loss on disposal of investment previously held?

Example

Had an initial investment of 30% and has later acquired an additional 40% of the sub’s equity

CV of 30% = $4.9
FV of 30% = $6.5

1. We de- recognized the previously CV

Dr Disposal Account $4.9
Cr Investment $4.9

2. We recognize the new investment @ FV
Dr goodwill $6.5
Cr Disposal account $6.5

3. I think the balancing figure is on the DR side and hence a loss on disposal, is that correct?

Thanks