Question One (20 marks) Madari Ltd purchased 100% of the shares of Concerto Ltd on 1 July 2020 for $70,000. On the date of acquisition, the equity of the vo entities was as follows: General Reserve Retained Earnings Share Capital Madari Ltd($) 25,000 4,500 60,000 Concerto Ltd (S) 5,500 3,300 38,000 At 1 July 2020, all of the identifiable assets and liabilities of Concerto Ltd were recorded at fair value except for the following: Inventory Plant and Equipment Carrying Amount ($) 3,000 60,000 Fair Value (S) 4,500 65,000 The plant and equipment had a further 5-year useful life. Any valuation adjustments are made on consolidation. All of the inventories were sold by December 2020. The assets of Concerto Ltd included Goodwill with a value of $5,000. Financial information for both entities for the year ended 30 June 2022 is shown below.