On 1 July 2017, London Ltd acquired all of the shares of Whale Ltd, on a cum-div. basis, for

$2,700,000. At this date, the equity and liability sections of Whale Ltd.s statement of financial position showedthe following balances:

Share capital	$ 1,150,000
General reserve	400,000
Retained earnings	920,000
Revaluation surplus	100,000
Dividend payable	25,000

At 1 July 2017, Whale Ltd.s assets included $46,000 of recorded goodwill. The dividend payable atacquisition date was subsequently paid in August 2017.

At acquisition date, all the identifiable assets and liabilities of Whale Ltd were recorded at amounts equal to fair value except for the following:

	Carrying amount	Fair value
Land	$450 000	$520 000
Inventory	49 000	55 000
Plant (cost $400 000)	320 000	360 000

The inventory on hand in Whale Ltd at 1 July 2017 was sold in November 2017. The plant was estimatedto have a further 5-year life with zero residual value. On 1 January 2019, the plant was sold to Bruno Ltd for $230,000. On 30 June 2018, goodwill was impaired by $4 500. The company applies the partial goodwill method. Tax rate is 30%.

Q1 Show the pre-acquisition analysis on 1 July 2017.

Q2 Prepare the BCVR entries on 30 June 2019. If BCVR entries are not necessary for a certain BCVR asset, please indicate it clearly and explain why BCVR entries are not necessary (You need to discuss more than simply saying as it was sold in the previous year).

Q3 Prepare the pre-acquisition entries on 30 June 2019.