Burly Contractors Pty Ltd (BurlyPty Ltd) is a small road maintenance company. The owners of Burly are looking to retire and are winding down the business. The company possesses some important trade secrets on efficient road maintenance techniques andhas a good reputation with several regional councils. Surf Ltd believes by combining its own experience with Burly'sroad maintenance techniques and reputation, it can win several contracts with councils and make significant profits. Surf approaches Burly's owners with an offer to buy the company. They agree, and on 1 July 2022, Surf Ltd acquired 100% of the share capital in Burly Pty Ltd for $4,000,000 (paid in cash). At acquisition, Burly Pty Ltd's equity consisted of: Share Capital 1,000,000 Retained Earnings 525,000 1,525,000