On 1 July 2013 William Led acquired all of the share capital (cum div) of Magnus Limited for a consideration of $600,000 cash and a brand that was held in their accounts at a book value of $10,000 but now had a fair value of $24,000. At the date of acquisition Magnus'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: ASSET Book Value Market Value Inventory 16,000 18,000 Land 65,000 68,000 Plant 17,000 (less depn) (2000) 15,000 19,000 Acounts Receivable 15,000 14,000 The inventory was all sold by 30/6/14. The remaining useful life of the plant is 5 years. The accounts receivable were collected by 30/6/14 for $14,000 The land was sold on 30/12/16 for $70000. The plant was on hand still at 30/6/17. At the date of acquisition the equity of William Ltd consisted of: Share Capital 380,000 General Reserve 70,000 Retained Earnings 62,000 Information from the trial balances of Magnus Ltd and William Ltd at 30 June 2017 is presented overleaf.Additional Information 1. On 1 Jan 2017 William Ltd sold inventory to Magnus Lid costing $70,000 for $80,000. Half of this inventory was sold to outside parties by 30/6/17. 2. On 1 Jan 2016 William Ltd sold inventory costing $12000 to Magnus Lid for $15,000. Magnus Ltd treats the item as equipment and depreciates it at 10% per annum. 3.On 1 July 2016 William sold plant to Magnus for $21,000. The plant had cost William $24,000 on 1 July 2014 and it was being depreciated at 10% per annum. Magnus regards the plant as inventory. The inventory was all sold by 30th July 2016. 4. At 1 July 2016 William Ltd held inventory that it had purchased from Magnus Ltd on 1 June 2016 at a profit of $5000. All inventory was sold by 30 June 2017 5. Magnus Ltd accrues dividends from William Ltd once they are declared. 6. Magnus Ltd has earned $1600 in interest revenue in the 2017 financial year from William Ltd. 7. Magnus Ltd has earned $3500 in service revenue in the 2017 financial year from William Ltd. 8. Assume a tax rate of 30%