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Q$.1$ On $1$ June $2010,$ Premier acquired $80\%$ of the equity share capital of Sanford. The consideration consisted of two elements: a share exchange of three shares in Premier for every five acquired shares in Sanford and $$800,000$ in cash. The share issue has not yet been recorded by Premier. At the date of acquisition shares in Premier had a market value of $$5$ each.

Below are the summarized draft financial statements of both companies.

Statements of profit or loss for the year ended $30$ September$\backslash$table$[[$Statements of financial position as at $30$ September $2010,],[$Non$-$current assets,$$000,5000],[$Property$,$ plant and equipment,$25,500,13,900],[$Investments$,1,800,$nil$],[,,],[,27,300,13,900],[$Current assets,$12,500,2,400],[$Total assets,$39,800,16,300$