On July MEDRadiology Pty Ltd had an item of equipment, the carrying amount of which was $accumulated depreciation was zero and the estimated fair value was $ At that date it was expected that the equipment had a further useful life of five years with a zero estimated residual value. MEDRadiology Pty Ltd applies the cost model for equipment and a straightline method of depreciation.

After making this fair value adjustment, the goodwill attributable to Medical Technology Ltds investment in MEDRadiology Pty Ltd was $ At the date of acquisition,the equity of MEDRadiology Pty

Ltd comprised twoline items; share capital of $ and retained earnings.You will need to work backwards to calculate that retained earnings balance. Medical Technology Ltd adopts the proportionate goodwill method.

On January Medical Technology Ltd sold a medical device to MEDRadiology Pty Ltd for $ with a markup of on cost At that time, the device was considered to have a useful life of ten years with a zero estimated residual value. MEDRadiology Pty Ltd still held that device at June