On 1 April 20X7 Price acquired 100% of Skate for 6 million cash. At the date of acquisition, a fair

value exercise was performed and the fair values of Skate's net assets at that date were:

000

Property 3,500

Plant 2,200

Intangible: brand 700

Other net assets 900

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7,300

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Required:-

Calculate the goodwill amount for the consolidated statement of financial position of Price.

Briefly explain what is done in the consolidated accounts when a bargain purchase occurs.