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On 1 July 2018, Trueman Ltd acquired 80% of the share capital of Base Ltd for $750,000. At this date, the financial statements of Base Ltd included the following items: + + Retained Earnings+ 300,000. Share Capital+ 400,000.. Other Components of Equity (OCE)- 50,000.. At 1 July 2018 all of the identifiable net assets of Base Ltd were recorded at fair value except for the following assets:+ Carrying Fair value.. amount+ Machinery (cost $400,000)- 250.000+ 280,000+. Land+ 300,000+ 400,000+ .. Adjustments for differences between carrying amounts and fair values of assets at acquisition date are made on consolidation. Machinery had a further ten-year life, with benefits expected to be received evenly over that time. Land was sold in June 2020. The partial goodwill method is used by Trueman Ltd.+ Additional information:+ (1) The value of the inventory of Trueman Ltd at 1 July 2019 included an intragroup profit of $40,000 as a result of purchases from Base Ltd. It was all sold by Trueman Ltd during the year ended 30 June 2020.+ (ii) During the year ended 30 June 2020, Base Ltd sold inventory to Trueman Ltd for $200,000 (cost price $140,000). At 30 June 2020, 10% of these inventory items were still held by Trueman Ltd.+ + (iii) The income tax rate is 30%.+ (iv) Extracts from the financial statements of Trueman Lid and Base Ltd at 30 June 2020 were as follows:+ Trueman Base Ltd-. Ltd+ Se Profit for the period 90,000 100,000. Retained earnings (1/7/19)+ 225,000+ 550,000. + 315,000+ 650,000. -Transfer to Other Components of Equity (from (20,000)- post-acquisition retained earnings)