4,285 2,310 1,385 The following information is relevant: 1) On 1 January 2016, Ghana Ltd acquired 60% of the equity share capital Nigeria Ltd. The consideration consisted of the following elements: cash of GH500 million, a share exchange of two shares in Ghana Ltd for every five acquired shares in Nigeria Ltd, GH200 million to be paid after 2 years of acquisition and GH 400 million to be paid at the end of the fifth year of acquisition if Nigeria earns a return of 25% on its equity. No entries have been made in the financial statements except the cash offer. At the date of acquisition, shares in Ghana Ltd had a market value of GH4 each and the shares of Nigeria Ltd had a stock market price of GH3 each. The cost of capital of Ghana is 10%. ii) On 30 July 2015 Ghana acquired 10% of Togo Ltd and on the same day Nigeria acquired 80% of Togo 111) During the year, Nigeria sold goods to Togo of GH260 million including a mark-up of 25% All of these goods remain in inventories at the year end. iv) Nigeria Ltd sold goods to Ghana for GHc300 million at a margin of 20% and only quarter of these goods were left in inventories at the year end. v) The retained earnings of the three companies at the acquisition dates was: 30 July 2015 1 January 2010 GH'm GH'm Ghana 1,610 1,860 Nigeria 700 950 Togo 40 100 vi) At the date of acquisition, the fair values of Nigeria Ltd.'s assets were equal to their carrying amounts with the exception of its property. This had a fair value of GHc10 million below its carrying amount and a remaining useful life years. Nigeria Ltd has not incorporated this value change into its separate financial statements 4,285 2,310 1,385 The following information is relevant: 1) On 1 January 2016, Ghana Ltd acquired 60% of the equity share capital Nigeria Ltd. The consideration consisted of the following elements: cash of GH500 million, a share exchange of two shares in Ghana Ltd for every five acquired shares in Nigeria Ltd, GH200 million to be paid after 2 years of acquisition and GH 400 million to be paid at the end of the fifth year of acquisition if Nigeria earns a return of 25% on its equity. No entries have been made in the financial statements except the cash offer. At the date of acquisition, shares in Ghana Ltd had a market value of GH4 each and the shares of Nigeria Ltd had a stock market price of GH3 each. The cost of capital of Ghana is 10%. ii) On 30 July 2015 Ghana acquired 10% of Togo Ltd and on the same day Nigeria acquired 80% of Togo 111) During the year, Nigeria sold goods to Togo of GH260 million including a mark-up of 25% All of these goods remain in inventories at the year end. iv) Nigeria Ltd sold goods to Ghana for GHc300 million at a margin of 20% and only quarter of these goods were left in inventories at the year end. v) The retained earnings of the three companies at the acquisition dates was: 30 July 2015 1 January 2010 GH'm GH'm Ghana 1,610 1,860 Nigeria 700 950 Togo 40 100 vi) At the date of acquisition, the fair values of Nigeria Ltd.'s assets were equal to their carrying amounts with the exception of its property. This had a fair value of GHc10 million below its carrying amount and a remaining useful life years. Nigeria Ltd has not incorporated this value change into its separate financial statements