17. Nat Ltd purchases a 100 per cent interest in Angourie Ltd. The cost of the acquisition is $1 400 000 plus associated legal costs of $70 000. As at the date of acquisition, the statement of financial position of Angourie Ltd shows: Assets Current assets Cash Accounts receivable Allowance for doubtful debts Inventory Total current assets Non-current assets $ $ $ 20 000 80 000 (10000) 70 000 100 000 190 000 Land and buildings, at cost 850 000 Accumulated depreciation-land and (150 000) 700 000 buildings. Plant and equipment 510 000 Accumulated depreciation-plant and (100 000) 410 000 equipment Total non-current assets 1 110 000 Total assets 1 300 000 Liabilities Current liabilities Accounts payable Bank overdraft 90 000 20 000 Total current liabilities 110 000 Non-current liabilities Bank loan Total liabilities Net assets 190 000 300 000 1 000 000 Additional information The assets and liabilities of Angourie Ltd are fairly stated except for land and buildings, which have a fair value of $800 000. Angourie Ltd has a brand name that is not recognised on the statement of financial position and that has a fair value of $50 000. There are no contingent liabilities. REQUIRED (a) Determine, for accounting purposes, the amount of goodwill that has been acquired by Nat Ltd. (b) Why do you think that Nat Ltd would have been prepared to pay for goodwill? (c) Can Nat Ltd revalue the goodwill upwards in a subsequent period? LO 8.2, 8.5, 8.8 Page 318-