Eddie Ltd acquires all the issued capital of Glen Ltd for a cash payment of $5,000,000 on 30 June 2016.

Glen Ltd financial position at purchase date is:

	($000)
Assets
Cash	500
Accounts receivable	900
Equipment	2 990
Land	4 500
Total assets	8 890
Liabilities
Accounts payable	560
Loans	3 830
Total Liabilities	4 390
Shareholders equity
Share capital	3 200
Retained earnings	1 300
Total liabilities and shareholders funds	8 890

All the liabilities and the assets of Glen Ltd are recorded at fair value apart from the equipment that has a fair value of $2,690,000.

Required: you are required to:

Calculate the amount of goodwill that will be recorded at the date of purchase, clearly indicating whether it is positive or negative (2marks)

Prepare the general journal entries required to eliminate the investment of Eddie Ltd in Glen Ltd. (4marks)