Laura Ltd purchased 97% of the issued shares of Chris Ltd for $1,759,000 on 1 July 2018 when the equity of Chris Ltd was as follows;

Share capital $703,600 Asset Revaluation surplus $527,700 Retained earnings $263,850 At this date, Chris Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the followings;

Account	Cost	Carrying Amount	Fair value	Further Life (Years)
Inventories		$52,800	$58,100
Land		$132,000	$145,000
Equipment	$205,000	$164,000	$197,000	8
Chris Ltd identified at acquisition date a contingent liability related to a lawsuit where Chris Ltd was sued by a former supplier			$21,000
Chris Ltd had unrecorded and internally generated Patent with the fair value of :			$53,000
Chris Ltd had unrecorded and internally generated in-process research and development with the fair value of :			$40,000

- 60% of inventory on hand at 1 July 2018 were sold by 20 June 2019. - Further life of the assets is listed on the above table. - Partial goodwill method is under use and the tax rate is 30%