Assume that on the balance sheet date shown below Oliver Corporation acquires 70% of Samuel, Inc. common shares for f70,000 in cash. Pre-acquisition Balance Sheets 31December, 2oxo Oliver Corp. ('000) 150 40 102 28 320 Samuel, Inc. ('000) PPE Current assets Cash Other assets 106 38 otal assets 167 Current liabilities Long-term debt Share capital Retained earnings Total liabilities and equity 60 32 125 103 320 46 60 17 167 The following points are relevant: 1. At the date of acquisition, the fair value of Samuel's land, which is not depreciated, was 25k in excess of its book value. 2. Oliver depreciates its property on a straight-line basis over 10 years whilst Satsuma depreciates it on a declining balance over 8 years. The cumulative difference in this policy amounted to 4k at 31 December 20X0 and a further 1k for the year ended 31 December 20X1. In both cases, Samuel's depreciation was lower than it would have been had it adopted Oliver's policy. 3. Samuel had a contingent liability included in the notes to its financial statements for a pending legal dispute for approximately t8K. 4. Included in other assets Oliver Corp was a receivable from Samuel of 10k. The payable to Oliver was included in Samuel's current liabilities. 5. The market conditions were very tough in year 20X1 and Samuel only made 1,000 profit for the year, comprised of a service fee which was paid in cash. There were no other transactions in 20X1 for Samuel. Consequently, Oliver Corp took the decision the write down its goodwill by 6k. Assume that on the balance sheet date shown below Oliver Corporation acquires 70% of Samuel, Inc. common shares for f70,000 in cash. Pre-acquisition Balance Sheets 31December, 2oxo Oliver Corp. ('000) 150 40 102 28 320 Samuel, Inc. ('000) PPE Current assets Cash Other assets 106 38 otal assets 167 Current liabilities Long-term debt Share capital Retained earnings Total liabilities and equity 60 32 125 103 320 46 60 17 167 The following points are relevant: 1. At the date of acquisition, the fair value of Samuel's land, which is not depreciated, was 25k in excess of its book value. 2. Oliver depreciates its property on a straight-line basis over 10 years whilst Satsuma depreciates it on a declining balance over 8 years. The cumulative difference in this policy amounted to 4k at 31 December 20X0 and a further 1k for the year ended 31 December 20X1. In both cases, Samuel's depreciation was lower than it would have been had it adopted Oliver's policy. 3. Samuel had a contingent liability included in the notes to its financial statements for a pending legal dispute for approximately t8K. 4. Included in other assets Oliver Corp was a receivable from Samuel of 10k. The payable to Oliver was included in Samuel's current liabilities. 5. The market conditions were very tough in year 20X1 and Samuel only made 1,000 profit for the year, comprised of a service fee which was paid in cash. There were no other transactions in 20X1 for Samuel. Consequently, Oliver Corp took the decision the write down its goodwill by 6k