On $1$ July $2023,$ ABC Ltd acquired all the issued shares of XYZ Ltd for $$278,000.$ At this

date, the equity of XYZ Ltd consisted of:

Share capital $ $200,000$

General reserve $10,000$

Retained earnings $30,000$

All the identifiable assets and liabilities of XYZ Ltd were recorded at amounts equal to their

fair values except for:

Carrying amount Fair value

Plant $($cost $$200000)$ $$175,000$ $$190,000$

Land $100,000120,000$

Inventory $10,00015,000$

The tax rate is $30\%.$

Required: Prepare an acquisition analysis on $1$ July $2023$ by ABC Ltd