A. Acquisition Analysis at 1 July 2013

Net Fair Value of Identifiable Assets = $380,000 + $70,000 + $62,000 (equity)

+ $2,000 (1 - 30%) (inventory)

+ $3,000 (1 - 30%) (land)

+ $4,000 (1 - 30%) (plant)

- $1,000 (1 - 30%) (acc. receivable)

= $517,600

Consideration Transferred = $600,000 - 10,000 (dividend receivable) + 24,000 (brands)

= $614,000

Goodwill $96,400

Why it needs to 1-30% in land inventory and plant