On 1 July 2016 Ryu Lid acquired 100% of the share capital (cum div.) of Ken Ltd for $480,000. At that date, the relevant balances in the records of Ken Ltd were: $ Share capital 310 000 General reserve 25 000 Retained earnings 90 000 Dividend payable 10 000 At the date of acquisition all assets and liabilities of Ken Lid were recorded in the accounting records at amounts equal to their fair values with the exception of the following assets: Carrying amount Fair value $ Land 40 000 48 000 Equipment 22 000 32 000 The land was sold in January 2018 for $55,000. The cost of the equipment was $40,000 and had a further useful life of four (4) years at the date of acquisition. Ken Ltd had reported a contingent liability at 1 July 2016 in the notes to the financial statements in relation to claims by customers for damaged goods. Ryu Lid placed a fair value of $9,000 on these claims at acquisition date. These claims were subsequently settled in October 2018 for $5,000. Additional information: a) On 1 July 2018, Ken Ltd held inventories that had been sold to it by Ryu Ltd in the previous year for $20,000, at a mark-up of 25%. The inventory was sold to external parties by 31 December 2018. b) On 1 December 2018, Ryu Ltd purchased inventory from Ken Lid for $18,000, recording a before-tax profit of $6,000. By 30 June 2019, Ryu Ltd sold two-third of these to external entities for $15,000