Fruit Ltd sold all of its non-current assets and liabilities to Salad Ltd on 1 July 2021. The Balance sheet of Fruit Ltd at the date of acquisition was as follows:

 

Item	Carrying amount
Item	Carrying amount
Current assets:
Cash	$85,000
Non-current assets:
Land & Buildings	$250,000
Plant & Machinery	$   80,000
Goodwill	$   35,000
Total Assets	$450,000
Non-current liabilities:
Mortgage	$200,000
Total Liabilities	$200,000
Net Assets	$250,000
Equity:
Share capital	$150,000
Retained earnings	$100,000
Total equity	$250,000

 

The Plant & Machinery had a cost of $128,000 and accumulated depreciation of 

$48,000. The fair value of the Plant & Machinery was $91,000. All other assets are shown at fair value. The acquisition was satisfied by the issue of 10,000 ordinary shares (fully paid) in Salad Ltd. Assume the identifiable assets and liabilities acquired constituted a business. The share price at various dates as listed on the ASX for Salad Ltd is shown in the table below:

 

Date	Share price (per share)
On issue	$10
30 June 2021	$11.50
1 July 2021	$12.50
30 June 2022	$11.75
Average for 2021 year	$13

 

 

 

Required:

Do a detailed acquisition analysis in good format showing the calculation of the goodwill /gain on bargain purchase, show your workings.  Marks are awarded for clear formatting. 

                                                       

Show your calculation of goodwill /bargain on purchase for question in the table below, expand the table as needed: