In 2019 Left Ltd acquired a 20\% investment in Right Ltd for $2 million. At the time of acquisition, the equity in Right Ltd consisted of Share Capital of $5 million and Retained profits of $3 million. This equity reflected the fair value of net assets with the exception of a depreciable asset that was carried at $400,000 below its fair value. This asset had a remaining estimated useful life of 10 years. During 2020 Right Ltd revalued its assets by $300,000. At 30 June 2021 the carrying amount of the investment in Right Ltd was $2.7 million in the books of Left Ltd. At 30 June 2021 Right Ltd held inventory purchased from Left Ltd. Left Ltd had recorded a profit of $150,000 on the sale. This inventory had been sold by Right Ltd by 30 June 2022. Right Ltd declared an after-tax profit of $500,000 and dividends of $250,000 for the year ended 30 June 2022. REQUIRED: a) Calculate the amount of goodwill acquired by Left Ltd pertaining to the investmentin Right Ltd and state how this goodwill would be reported by Left Ltd. (1 mark) b) Show the journal entry to recognize the asset revaluation in 2020 in the books of LeftLtd. (1 mark) [Please write your answer in this textbox.] c) State the relevant line disclosures pertaining to the investment in Right Ltd in the 30 June 2022 financial statements of Left Ltd (including both comprehensive income statement and balance sheet). Show workings in space below. (4 marks) [Please write your answer in this textbox.] In comprehensive income statement: In the balance sheet: Workings: In 2019 Left Ltd acquired a 20\% investment in Right Ltd for $2 million. At the time of acquisition, the equity in Right Ltd consisted of Share Capital of $5 million and Retained profits of $3 million. This equity reflected the fair value of net assets with the exception of a depreciable asset that was carried at $400,000 below its fair value. This asset had a remaining estimated useful life of 10 years. During 2020 Right Ltd revalued its assets by $300,000. At 30 June 2021 the carrying amount of the investment in Right Ltd was $2.7 million in the books of Left Ltd. At 30 June 2021 Right Ltd held inventory purchased from Left Ltd. Left Ltd had recorded a profit of $150,000 on the sale. This inventory had been sold by Right Ltd by 30 June 2022. Right Ltd declared an after-tax profit of $500,000 and dividends of $250,000 for the year ended 30 June 2022. REQUIRED: a) Calculate the amount of goodwill acquired by Left Ltd pertaining to the investmentin Right Ltd and state how this goodwill would be reported by Left Ltd. (1 mark) b) Show the journal entry to recognize the asset revaluation in 2020 in the books of LeftLtd. (1 mark) [Please write your answer in this textbox.] c) State the relevant line disclosures pertaining to the investment in Right Ltd in the 30 June 2022 financial statements of Left Ltd (including both comprehensive income statement and balance sheet). Show workings in space below. (4 marks) [Please write your answer in this textbox.] In comprehensive income statement: In the balance sheet: Workings
