On 1 January 2014 Rome Ltd acquired 100% of Carthage Ltd for $1,630,000 in cash. At the time of acquisition Carthage Ltd had a recorded Share Capital of $150,000 and Retained Earnings of $80,000. As at the date of acquisition, Carthage Ltd had a five-year old building, which it had bought for $1,000,000, but was valued at $1,500,000. The building had total useful life of 25 years. At the time of acquisition, Carthage Ltd also had an internally generated identifiable brand (Hannibals Elephant Glue) which was previously unrecognised, but valued at $300,000. It was viewed that due to being well-known this brand would have a useful life of 15 years. Additional information Each year Carthage Ltd declares a final dividend of $14,000, which is paid in the following year. Rome Ltd lent Carthage Ltd $150,000 on 23 February 2014, for which the interest rate is 10%. This financial year, Carthage Ltd paid this and next years interest. None of the loan has been repaid. At the start of the current financial year Rome Ltd had on hand inventory it had bought from Carthage Ltd last year for $90,000 (paid in cash) that originally cost Carthage Ltd $40,000. During the current financial year Rome Ltd sold all of this inventory outside the group for $120,000. During the current financial year Rome Ltd bought inventory from Carthage Ltd for $70,000, which cost Carthage Ltd $50,000. Rome Ltd has sold 10% of this inventory outside the group for $10,000. Rome Ltd bought all the inventory on credit and has not repaid any of the amount owing at the end of the year. Assume a 31 December year end and no tax.