On 1 July 2016, Parrot Ltd acquired 80% of the share capital of Squirrel Ltd for S264 800. On that date, the statement of financial position of Squirrel Ltd consisted $250 000 10 000 15 000 10000 180 000 $465 000 S 35 000 70 000 65 000 300000 130 000) 100 000 25 000 S465 000 Share capital General reserve Asset revaluation surplus Retained earnings Liabilities Cash Inventories Land Plant and equipment Accumulated depreciation- plant and equipment Trademark Goodwill At 1 July 2016, all identifiable assets and liabilities of Squirrel Ltd were recorded at fair value except for: Carrying amount Fair value S 70 000 80 000 65 000 85 000 70 000 90 000 Inventories Plant and equipment (cost S200 Trademark 100 000 110000 During the year ended 30 June 2017, all inventories on hand at the beginning of the year were sold, and the land was sold on 28 February 2017 to Outback Ltd for $80 000 The plant and equipment had a further 5-year life beyond 1 July 2016 and was expected to be used evenly over that time. The trademark was considered to have an indefinite life. Any adjustments for differences at acquisition date between carrying amounts and fair values are made in the consolidation worksheet. Parrot Ltd uses the partial goodwill method. The tax rate is assumed to be 30%. Financial information for Parrot Ltd and Squirrel Ltd for the year ended 30 June 2017 is shown below