On 1 July 2012 Donnell Ltd acquired all of the share capital (cum div) of Corall Limited for a consideration of $500,000 cash and a brand that was held in their accounts at a book value of $10,000 but now had a fair value of $34,000. At the date of acquisition Corall's accounts showed a dividend payable of $10,000. At that date all the identifiable assets and liabilities were recorded at fair value with the exception of (table 1)(and the equity of Corall is consisted of (table 2))

The inventory was all sold by 30/6/13. The remaining useful life of the plant is 5 years.

The accounts receivable were collected by 30/6/13 for $14,000

The land was sold on 30/12/15 for $32000. The plant was on hand still at 30/6/16.