On 1 July 2018, Red River Ltd acquired 70% of the share capital of Mekong Ltd for $1,200,000. The equity of Mekong Ltd was:

Share Capital $1,050,000

General Reserve $ 300,000

Retained Earnings $ 150,000

All assets of Mekong Ltd were recorded at Fair Value (FV) on acquisition, except for a piece of equipment that had a higher FV ($50,000) than its carrying amount. The cost of the equipment was $300,000, and accumulated depreciation is $196,000. The tax rate is 30%

Required:

Complete the worksheet below using the Gross Method.

Elimination of investment is subsidiary (Mekong Ltd)	Mekong Ltd $	Red River Ltd 70% interest	30% NCI $
FV of consideration transferred	1,200,000	1,200,000
*Plus NCI measured at FV
less FV of assets acquired, liabilities assumed
Share capital on acquisition date	1,050,000
General Reserve on acquisition	300,000
Retained earnings on acquisition	150,000
FV adjustment
Fair Value of Net Identifiable Assets acquired
Goodwill on acquisition date