Undervalued and unrecorded assets, full goodwill method   LO3, 4, 5, 6, 7 On 1 July 2016, Riley Ltd acquired 70% of the issued shares (cum div.) of Tyler Ltd for $141 950. At this date, the equity of Tyler Ltd consisted of: Share capital $100 000 General reserve 31 000 Retained earnings 25 000 Other components of equity 9 000 Tyler Ltd’s records showed a dividend payable at 1 July 2016 of $10 000. The dividend was paid on 1 November 2016. A comparison of the carrying amounts and fair values of the assets of Tyler Ltd at 1 July 2016 revealed the following. Carrying amount Fair value Plant (cost $75 000) $45 000 $60 000 Vehicles (cost $40 000) 23 000 23 000 Goodwill 10 000 10 000 Both plant and vehicles were expected to have a further 5‐year life beyond the acquisition date, with benefits being received evenly over those periods. The plant was sold on 30 June 2019. Tyler Ltd had not recorded an internally generated brand name that was considered by Riley Ltd to have a fair value of $20 000. The brand name is regarded as having an indefinite useful life. Adjustments for the differences in carrying amounts and fair values are recognised in the consolidation worksheet. At 30 June 2017, goodwill was considered to be impaired by $1000, and a further impairment loss of $2000 was recognised by 30 June 2018. Riley Ltd uses the full goodwill method. The fair value of the NCI at 1 July 2016 was $57 000. The tax rate is 30%. Additional information • The dividends paid and declared since 1 July 2016 are: – $10 000 dividend declared in June 2017, paid in October 2017 – $5000 dividend declared in June 2018, paid in September 2018 – $8000 dividend paid in April 2019. • In June 2018, Tyler Ltd transferred an amount of $20 000 from the pre‐acquisition general reserve to retained earnings. • The other components of equity account reflects movements in the fair values of financial assets. The balances of this account at 1 July 2018 were $4000 for Riley Ltd and $11 000 for Tyler Ltd. • On 30 June 2019, the financial data of both companies were as follows. Riley Ltd Tyler Ltd Revenues $280 000 $190 000 Expenses 220 000 140 000 Profit before tax 60 000 50 000 Income tax expense 26 000 14 000 Profit for the period 34 000 36 000 Retained earnings (1/7/18) 76 000 65 000 Total available for appropriation 110 000 101 000 Dividend paid 20 000 8 000 Retained earnings (30/6/19) 90 000 93 000 Share capital 100 000 100 000 General reserve 44 000 11 000 Other components of equity 6 000 9 000 Payables 20 000 12 000 $260 000 $225 000 Cash $ 22 050 $ 43 000 Financial assets 20 000 30 000 Vehicles 35 000 50 000 Accumulated depreciation — vehicles (12 000) (30 000) Plant and equipment 80 000 120 000 Accumulated depreciation — plant and equipment (50 000) (75 000) Land 30 000 — Goodwill — 10 000 Accumulated impairment — goodwill — (3 000) Trademarks — 80 000 Shares in Tyler Ltd 134 950 — $260 000 $225 000 Required Prepare the consolidated financial statements of Riley Ltd as at 30 June 2019.