3 On October 18, 2020, Beta Corporation ("Beta") announced its plan to acquire 80% of the outstanding 500,000 shares of Romeo Ltd ("Romeo") common stock in a business combination following regulatory approval. Beta will account for the transaction in accordance with IFRS. On December 1, 2020, Beta purchased an 80% percent controlling interest in Romeo's outstanding voting shares. On this date, Beta paid $40 million in cash and issued one million shares of Beta common stock to the selling shareholders of Romeo. Beta's share price was $26 on the announcement date and $24 on the acquisition date. Romeo's remaining 100,000 shares of common stock had been purchased for $3,000,000 by a small number of original investors. These shares have never been actively traded. Using other valuation techniques (comparable firms, discounted cash flow analysis, etc.) Beta estimated the acquisition date fair value of Romeo's non- controlling shares at $16,500,000. The parties agreed that Beta would issue to the selling shareholders an additional one million shares contingent upon the achievement of certain performance goals during the first 2 months following the acquisition. The acquisition date fair value of the contingent stock issue was estimated at $8 million. Beta has a research and development (R&D) project underway to develop superconductive electrical/magnetic application. Total costs incurred to date on the project equal $4,400,000. However, Beta estimates that the technology has a fair value of $11 million. Beta considers this R&D as in process because it has not reached technological feasibility and additional R&D is needed to bring the project to completion. No assets have been recorded in Romeo's financial records for the R&D costs to date. Romeo's other assets and liabilities (at fair value) include the following: Cash Accounts receivable Land Building Machinery Patents Accounts payable $425,000 788,000 3,487,000 16,300,000 39,000,000 7,000,000 (1,500,000) Neither the receivables nor payables involve Beta. Required: i. What is the total consideration transferred by Beta to acquire its 80% controlling interest in Romeo? (3 marks) ii. What values should Beta assign to identifiable intangible assets as part of the acquisition accounting? (4 marks) iii. What is the acquisition date value assigned to the 20% percent non-controlling interest? What are the potential noncontrolling interest valuation alterna ves available under IFRS? (6 marks) iv. What amount should Beta recognize as goodwill from the Romeo acquisition? (4 marks)