On 1 July 2015, Fluffy Ltd acquired all the issued shares of Glider Ltd. Fluffy Ltd paid $30 000 in cash and 20 000 shares in Fluffy Ltd valued at $3 per share. At this date, the equity of Glider Ltd consisted of $66 000 share capital and $6000 retained earnings.

At 1 July 2015, all the identifiable assets and liabilities of Glider Ltd were recorded at amounts equal to their fair values except for:

\fFluffy Ltd Glider Ltd Dr Cr Dr CR Sales revenue 64500 78000 Cost of sales 30900 46350 Trading expenses 4800 9000 Office expenses 4950 4050 Depreciation expenses 1800 3900 Proceeds on sale of plant 9000 15000 Carrying amount of plant sold 7500 14000 Income tax expense 11100 7300 Share capital 96000 66000 Retained earnings 48000 31500 Current liabilities 21 100 10500 Deferred tax liability 11000 15000 Plant 57000 107250 Accumulated depreciation - plant 18300 33450 Intangibles 12000 11100 Deferred tax assets 8100 9450 Shares in Glider Ltd 90000 0 Inventory 28500 24600 Receivables 8250 12450 267900 267900 249450 249450