Nathan Ltd purchases a $100$ per cent interest in Angila Ltd$.$ The cost of the acquisition is $$1400000$ plus associated legal costs of $$70000.$ As at the date of acquisition, the statement of financial position of Angila Ltd shows:

Assets

Current assets

Cash $20000$

Accounts receivable $80000$

Allowance for doubtful debts $(10000)70000$

Inventory $100000$

Total current assets $190000$

Non$-$current assets

Land and buildings, at cost $850000$

Accumulated depreciation$$land and buildings $(150000)700000$

Plant and equipment $510000$

Accumulated depreciation$$plant and equipment $(100000)410000$

Total non$-$current assets $1110000$

Total assets $1300000$

Liabilities

Current liabilities

Accounts payable $90000$

Bank overdraft $20000$

Total current liabilities $110000$

Non$-$current liabilities

Bank loan $190000$

Total liabilities $300000$

Net assets $1000000$

Additional information

a$.$ The assets and liabilities of Angila Ltd are fairly stated except for land and buildings, which have a fair value of $$800000.$

b$.$ Angila Ltd has a brand name that is not recognised on the statement of financial position and that has a fair value of $$50000.$

c$.$ There are no contingent liabilities.

Required:

$1.$ Calculate the amount of goodwill. Show all workings. $(6$ marks$)$

$2.$ Discuss the initial and subsequent measurement of goodwill by referring to AABS $138$ and AASB $3.(4$ marks$)$