On 1 July 2018, Priscilla Ltd acquired all the issued shares of Lisa Marie Ltd. The consideration for the acquisition was $30 000 in cash and 20 000 shares in Priscilla Ltd, valued at $3 per share. At this date, the equity of Lisa Marie Ltd consisted of $66 000 share capital and $6 000 retained earnings. At 1 July 2018, all the identifiable assets and liabilities of Lisa Marie Ltd were recorded at amounts equal to their fair values except for: Plant (cost $150 000) Carrying amount $ 120 000 Fair value $ 123 000 105 000 Patents Inventories 90 000 18 000 22 500 The plant was considered to have a further 5-year life. The patents were sold for $120 000 to an external entity on 18 August 2018. The inventories were all sold to external entities by 30 June 2019. Additional information (a) Priscilla Ltd sells certain raw materials to Lisa Marie Ltd to be used in its manufacturing process. At 1 July 2021, Lisa Marie Ltd held inventories sold to it by Priscilla Ltd in the previous year at a profit before tax of $600. During the 2021-22 year, Priscilla Ltd sold inventories to Lisa Marie Ltd for $21 000. None of the inventories are on hand at 30 June 2022. (b) Lisa Marie Ltd also sells items of inventories to Priscilla Ltd. During the 2021-22 year, Lisa Marie Ltd sold goods to Priscilla Ltd for $4500. At 30 June 2022, inventories which had been sold to Priscilla Ltd at a profit before tax of $300 are still on hand in Priscilla Ltd's inventories. (c) On 1 July 2021, Lisa Marie Ltd sold an item of plant to Priscilla Ltd for $15 000 that had cost Lisa Marie Ltd $14 000 on the same date. This plant is depreciated at 10% p.a.. (d) On 1 January 2021, Priscilla Ltd sold inventories to Lisa Marie Ltd for $18 000. The inventories had cost Priscilla Ltd $16 000. This item was classified by Lisa Marie Ltd as plant and depreciated at 20% p.a. (e) On 1 March 2022, Lisa Marie Ltd sold an item of plant to Priscilla Ltd. Whereas Lisa Marie Ltd classified this as plant, Priscilla Ltd classified it as inventories. The sales price was $9000, which included a profit before tax to Lisa Marie Ltd of $1500. Priscilla Ltd sold this asset to an external entity on 31 March 2022 for $9 900. (f) The tax rate is 30%.