On 1 January 2020, Aqua Ltd purchased all the shares of Marine Ltd for $2,000,000. The following extract provides information about Marine Ltd's financial position on that date.

Share Capital 1,500,000

Buildings 800,000

Retained Earnings 300,000

Accumulated Depreciation (500,000)

Reserves 200,000

Additional Information

The fair value of the buildings is $400,000. They have a remaining useful life of 25 years.

On 30 September 2020, Aqua sold a vehicle to Marine Ltd for $20,000. The vehicle was originally

acquired for $40,000 and had been depreciated by $15,000. It has remaining useful life of 3 years.

i) Calculate the goodwill on acquisition, clearly indicating whether it is positive or negative.

ii Prepare the pre-acquisition elimination entries on 31 December 2021

iii Prepare other elimination entries required on 31 December 2020