Hosterling purchased the following equity investments:
On 1 October 2005: 80% of the issued share capital of Sunlee. The acquisition was through a share exchange of three shares in Hosterling for every five shares in Sunlee. The market price of Hosterling's shares at 1 October 2005 was $5 per share.
On 1 July 2006: 6 million shares in Amber paying $3 per share in cash and issuing to Amber's shareholders 6% (actual and effective rate) loan notes on the basis of $100 loan note for every 100 shares acquired.
The summarized statement of comprehensive incomes for the three companies for the year ended 30 September 2006 are:

The following information is relevant:
(i) The other income is a dividend received from Sunlee on 31 March 2006.
(ii) The details of Sunlee's and Amber's share capital and reserves at 1 October 2005 were:

(iii) A fair value exercise was carried out at the date of acquisition o Sunlee with the following results:

The fair values have not been reflected in Sunlee's financial statements.
Plant depreciation is included in cost of sales.
No fair value adjustments were required on the acquisition of Amber.
(iv) In the year ended 30 September 2006 Hosterling sold goods to Sunlee at a selling price of $18 million. Hosterling made a profit of cost plus 25% on these sales. $7.5 million (at cost to Sunlee) of these goods were still in the inventories of Sunlee at 30 September 2006.
(v) Impairment tests for both Sunlee and Amber were conducted on 30 September 2006. They concluded that the goodwill of Sunlee should be written down by $1.6 million and, due to its losses since acquisition, the investment in Amber was worth $21.5 million.
(vi) All trading profits and losses are deemed to accrue evenly throughout the year.
Required:
(a) Calculate the goodwill arising on the acquisition of Sunlee at 1 October 2005.
(b) Calculate the carrying amount of the investment in Amber at 30 September 2006 under the equity method prior to the impairment test.
(c) Prepare the consolidated statement of comprehensive income for the Hosterling Group for the year ended 30 September 2006.

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Hosterling 5000 105 000 (68 000) 3 700 Sunlee $000 62000 Amber 8000 Revenue Cost of sales Gross profit(loss) Other income (note () Distribution costs Administrative expenses Finance costs Profit/(loss) before tax Income tax (expense)/credit Profit/(loss) for the period 50 000 (61 000) (11 000) nill (4 500) (8 500) nil (24 000) 4 000 (20000) (36 500) 25 500 nil 400 (4 000) (7 500) 1 200) 24 700 (2 500) (7 000) ((900) 15 600 (8 700)(2 600) 16 000 13 000 Sunlee $000 20 000 18 000 Amber $000 15 000 35 000 Equity shares of $1 each Retained earnings Remaining life (straight line) Intellectual property Land Plant Carrying amount $000 18 000 1 700 30 000 Fair value $000 22 000 20000 35 000 still in development not applicable five years