Nat Ltd purchases a 100 percent interest

4. Nat Ltd purchases a 100 per cent interest in Angourie Ltd. The cost of the acquisition is $1 400 000 plus associated legal costs of $70 000. As at the date of acquisition, the statement of financial position ion Assets Current assets 20000 Cash 80 000 Accounts receivable (10 000) 70000 Allowance for doubtful debts 100 000 Inventory 190 000 Total current assets Non-current assets 850 000 Land and buildings, at cost (150 000) 700000 Accumulated depreciation-land and buildings 510 000 Plant and equipment 410 000 (100 000) Accumulated depreciation-plant and equipment 1110000 Total non-current assets 1 300 000 Total asset Liabilities Current liabilities 4/0 90000 Accounts payable 20 000 Bank overdraft Total current liabilities 110 000 Non-current liabilities 190 000 Bank loan 300 000 Total liabilities 1000 000 Net assets Additional information: The assets and liabilities of Angourie Ltd are fairly stated except for land and buildings, which have a fair value of $800 000. Angourie Ltd has a brand name that is not recognised on the statement of financial position and that has a fair value of $50 000. There are no contingent liabilities. REQUIRED (a) Determine, for accounting purposes, the amount of goodwill that has been acquired by Nat Ltd. (b) Why do you think that Nat Ltd would have been prepared to pay for goodwill? (c) Can Nat Ltd revalue the goodwill upwards in a subsequent period