On 1 July 2018 Lamrim Ltd acquired all the ordinary shares in Freedom Ltd for $12,000,000. At this date, the shareholders equity of Freedom Ltd consisted of: $ Share capital 5,000,000 Retained earnings at 1.7.18 3,300,000 General reserve 2,500,000 Total equity 10,800,000 At 1 July 2018 the carrying amounts of the identifiable assets in Freedom Ltds statement of financial position are approximately equal to their fair values with one exception. An item of plant has a carrying amount of $400,000 (cost $1,000,000) but a fair value of $800,000. On the acquisition date, the plant has a remaining useful life of four years and is depreciated on a straight-line basis for both accounting and tax purposes. An impairment loss of $500,000 relating to the goodwill arising on the acquisition of Freedom Ltd was recognised during the year ended 30 June 2019. The company tax rate is 30%.