3. On 1 April 20X4 Parent purchased an 80% holding in Subl for $18.5m in cash, At the date of acquisition, the fair value of Subl's assets were equal to their carrying amounts with the exception of the items listed below which exceeded their carrying amounts as follows: $ 000 Inventories 700 Plant and equipment 2.300 3,000 The non-controlling interest in Subl is to be valued at its fair value of $6.5m at the date of acquisition. At 1 April 20x4 the equities in the statements of financial position of the two companies are as follows: Parent Subi $' 000 $' 000 Share capital ($1 shares) 10,000 5,600 Reserves 67,500 10, 400 Parent also acquired 80% of Sub2's 250,000 $1 shares on 1 January 20X4 for $600,000 when the reserves of Sub2 were $550,000. It is group policy to measure non-controlling interests at fair value at acquisition. The fair value of the non-controlling interests in Sub2 at acquisition was $200,000. On 1 June 20x8 Parent disposed of its shareholding for $3,000,000. At that date, the Sub2's reserves were $950,000. Goodwill in Sub2 of $300,000 arose on acquisition. No impairment has been necessary. Required: (1) Calculate the goodwill on the acquisition day. (55) (2) What is the group profit or loss on disposal of Sub2 to be shown 3. On 1 April 20X4 Parent purchased an 80% holding in Subl for $18.5m in cash, At the date of acquisition, the fair value of Subl's assets were equal to their carrying amounts with the exception of the items listed below which exceeded their carrying amounts as follows: $ 000 Inventories 700 Plant and equipment 2.300 3,000 The non-controlling interest in Subl is to be valued at its fair value of $6.5m at the date of acquisition. At 1 April 20x4 the equities in the statements of financial position of the two companies are as follows: Parent Subi $' 000 $' 000 Share capital ($1 shares) 10,000 5,600 Reserves 67,500 10, 400 Parent also acquired 80% of Sub2's 250,000 $1 shares on 1 January 20X4 for $600,000 when the reserves of Sub2 were $550,000. It is group policy to measure non-controlling interests at fair value at acquisition. The fair value of the non-controlling interests in Sub2 at acquisition was $200,000. On 1 June 20x8 Parent disposed of its shareholding for $3,000,000. At that date, the Sub2's reserves were $950,000. Goodwill in Sub2 of $300,000 arose on acquisition. No impairment has been necessary. Required: (1) Calculate the goodwill on the acquisition day. (55) (2) What is the group profit or loss on disposal of Sub2 to be shown