Jimmy Ltd acquired all the issued shares (cum div. ) of Nu Lid on 1 July 2019 for $110 000. At this date Nu Ltd recorded a dividend payable of $10 000 and equity of: Share capital $54 000 Retained earnings 36 000 Asset revaluation surpluse 18 000 All the identifiable assets and liabilities of Nu Ltd were recorded at amounts equal to their fair values at acquisition date except for: Carrying amounts Fair value Inventories 14 000 16 000 Machinery (cost $100 000) 92 500 4 000 The machinery was considered to have a further 5-year life. Of the inventory, 90% was sold by 30 June 2020. The remainder was sold by 30 June 2021.~ Both Jimmy Ltd and Nu Ltd use the valuation method to measure the land. At 1 July 2019, the balance of Jimmy Ltd's asset revaluation surplus was $13 500.~ In May 2020, Nu Ltd transferred $3 000 from the retained earnings at 1 July 2019 to a general reserve. The tax rate is 30%.~ The following information was provided by the two companies at 30 June 2020.~ Jimmy Ltd Nu Ltd Profit before tax $ 120 000 $ 12 500 Income tax expense (56 000) (4 200) Profit for the year 64 000 8 300 Retained earnings (1/7/19) 80 000 36 000 144 000 44 300 Transfer to general reserve 0) 3 000} Retained earnings (30/6/20)- $144 000 $41 300 Share Capital $360 000 $54 000 Retained earnings 144 000 41 300 General reserve 10 000 3 000- Asset revaluation reserve 18 500 20 000 Liabilities 42 500 13 000 $575 000 $131 300 Land $160 000 $20 000 Plant & Machinery 360 000 125 600 Accumulated depreciation -Plant & machinery (110 000) (33 000) Inventories 55 000 18 700 Shares in Nu Ltde 110 000 $575 000 $131 300