On 1 July 2015, Ping Pong Ltd acquired all the issued shares of Sing Song Ltd. At the date of acquisition, the shareholders' equity of Sing Song Ltd consisted of share capital $120,000; general reserve $25,000 and retained earnings S55,000. The identifiable net assets of Sing Song Ltd were recorded at amounts equal to their fair values, except for the following assets: Carrying amount Fair value Land 100,000 78,500 52,000 47,000 130,000 86,100 56,000 53,000 Inventories Machinery (cost $86,000) Vehicles (cost $58,000 The assets of Sing Song Ltd at acquisition date included goodwill recorded at $15,000 arising from a business combination transaction in 2011. As at the date of acquisition, the vehicles and machinery were expected to have a further useful life of 6 and 8 years respectively, with benefits to be received evenly over those periods. Inventories on hand on 1 July 2015 was all sold by 31 January 2016. The land owned at 1 July 2015 was sold in September 2016 for S150,000. The machinery on hand at 1 July 2015 was sold on 1 January 2018 for S38,000. Adjustments for the differences between carrying amount and fair values of assets and liabilities on hand at acquisition date are recognised on consolidation. When assets are sold or derecognised, any related valuation reserves are transferred to retained earnings