On 1 January 2018, A Ltd bought all of the assets and liabilities of B Ltd for a price of ?500,000. B Ltd then went into liquidation. The statements of financial position of the two companies just before this purchase were as follows:

The fair values of the assets and liabilities of B Ltd as at 1 January 2018 were agreed to be as follows:? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?000Property, plant and equipment ....................................................390Inventories...................................................................................160Trade receivables......................................................................... 80Current liabilities..........................................................................180

Required:(a) Calculate the amount paid by A Ltd for the goodwill of B Ltd.(b) Prepare a statement of financial position for A Ltd as it would be immediately after the purchase of the net assets of B Ltd, assuming that A Ltd paid for this purchase out of its bank account.

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A Ltd B Ltd £000 £000 £000 £000 Assets Non-current assets 4,320 Property, plant and equipment 460 Current assets Inventories 1,210 220 Trade receivables 940 90 1,650 3,800 Cash at bank 310 8,120 770 Equity Ordinary share capital Retained earnings 1,000 3,650 200 390 4,650 590 Liabilities Non-current liabilities 2,500 970 180 Current liabilities 8,120 770