On $1$ January $2004$ Joey Ltd acquired $22\%$ of the shares of Leo Lid for $$1,296,000.$

At that date the equity of Leo Lid was $$6,480,000,$ with all identifiable assets and liabilities

being carried at fair value.

Profits$($losses$)$ made since the date of acquisition are as follows:

There have been no dividends paid or movements in reserves since the date of acquisition.

Required

What is the carrying amount for the investment in Leo on $31$ December $2004$ in

What is the amount of goodwill at the acquisition date $1$ Janary $2004$ and bow

is it treated? Show the equationand the iournal entry at the accousation date

the boeks of Joey$-$ Recond any necessary entries? Shew all ealculations

What is the carrying amount for the investment in Leo on $31$ December $2005$ in

the books of Jocy$-$Becond any$-$nscssansentriss? Shew all calculations

What is the carrying ameunt for the imvestment in Leo on $31$ December $2006$ in

the books of Joey$-$ Record any necrssary entries? Show all calculations

$4-$ What is the balance of unrecorded losses$-$ if any$-$ on $31$ December $2005.$

$6-$ What is the balance of unrecorded losses$-$ if any$-$ on $31$ December $2006.$