Ang Limited is performing the acquisition accounting after gaining a 70% controlling interest in Lee Limited on 1 July 2020. The consideration transferred for the acquisition included Ang issuing 100,000 ordinary shares on the acquisition date. Ang applies the full goodwill method when accounting for business combinations.

The following information is available:

Item 1: Lee has an unrecognised brand name at the acquisition date. A fair value of $500,000 has been measured for the brand name.

Item 2: Lee earned a profit after tax of $2 million for the year ended 30 June 2021.

Item 3: Lee was defending a lawsuit at the acquisition date relating to damages allegedly suffered by a customer from the use of one of Lees products. The lawyers determined that there was a present obligation, but payment of the claim was not considered probable. Accordingly, the company had not recognised a liability in its balance sheet. A fair value of $600,000 was measured for this contingent liability at the acquisition date.

Item 4: The fair value of the 30% non-controlling interest in Lee was measured at $2 million at acquisition date.

Item 5: The fair value of Angs shares at 30 June 2021 was $5.00 per share.

Which of the above items are relevant when calculating the goodwill arising from the business combination under IFRS 3 Business Combinations?

	A.	Items 1, 3 and 4.
	B.	Items 1, 3 and 5.
	C.	Items 1 and 4.
	D.	Items 2, 3 and 4.