(a) Calculate the fair value consideration (Costs of investment) transferred to acquire control of Santolina Ltd at the date of acquisition. Your answer should include a brief explanation if any of the above issue(s) is/are not required to be accounted in your working(s). [10 Marks] On the acquisition date, the retained earnings of Santolina Ltd stood at $ 80,000 and share capital was $ 500,00. Santolina Ltd holds an Intangible Asset (a software) which has not been recognized in its financial statements. The directors of Pine Ltd are of the opinion that the Intangible Asset should be accounted. The Intangible Asset had a fair value of $ 350,000 and a remaining term five years to go as from the date of acquisition. The carrying value of Property and Plant was in excess by $ 120,000 on the acquisition date. Property and Plant had a lifetime of two years at the acquisition date. Included within the intangible assets of Santolina Ltd (at the acquisition and reporting date) is goodwill of $ 10,000 which arose on the purchase of the trade and assets of a sole-trader business. (b) Calculate the net assets of Santolina Ltd at the date of acquisition (01 February 2021) and at the reporting date (31 January 2022). Goodwill has been impaired by $ 50,000 at the reporting date (31 January 2022). [10 Marks] (c) Calculate the goodwill using the proportion method at the date of acquisition (01 February 2021). (d) Calculate the non-controlling interest (NCI) as at 31 January 2022. [5 marks] [2 Marks] Pine Ltd has recently appointed an accountant, Mrs. Saponaria, following the resignation of the previous group accountant. When Mrs. Saponaria was preparing the group accounts for the y 3 of 4 31 January 2022, he found that only the cash oneration of $ 350,000 has been account value of each ordinary share for Pine Ltd is $ 1. (e) Calculate the group retained earnings as at 31 January 2022. [3 Marks] ||| 3 On the acquisition date, the retained earnings of Santolina Ltd stood at $ 80,000 and share capital was $ 500,00. Santolina Ltd holds an Intangible Asset (a software) which has not been recognized in its financial statements. The directors of Pine Ltd are of the opinion that the Intangible Asset should be accounted. The Intangible Asset had a fair value of $ 350,000 and a remaining term five years to go as from the date of acquisition. The carrying value of Property and Plant was in excess by $ 120,000 on the acquisition date. Property and Plant had a lifetime of two years at the acquisition date. Included within the intangible assets of Santolina Ltd (at the acquisition and reporting date) is goodwill of $ 10,000 which arose on the purchase of the trade and assets of a sole-trader business. 3 (b) Calculate the net assets of Santolina Ltd at the date of acquisition (01 February 2021) and at the reporting date (31 January 2022). Goodwill has been impaired by $ 50,000 at the reporting date (31 January 2022). [10 Marks]