Exercise 29.4 Undervalued assets, full and partial goodwill method On 1 July 2022, Jane Ltd acquired 75% of the issued shares of Austen Ltd for $360 000. At this date, the equity of Austen Ltd consisted of share capital of $200 000 and retained earnings of $130 000. All the identifiable assets and liabilities of Austen Ltd were recorded at amounts equal to fair value except for the following.

Austen Ltd also had an internally generated patent not recognised at 1 July 2022. Jane Ltd assessed the fair value of that patent at $50 000. The tax rate is 30%.

Required

1. Prepare the acquisition analysis at 1 July 2022 assuming that Jane Ltd used the partial

   goodwill method.

2. Prepare the acquisition analysis at 1 July 2022 assuming that Jane Ltd used the full

   goodwill method and the fair value of the noncontrolling interest at 1 July 2022 was

   $110 000.

(LO4 and LO7)