On 1 July 2019, A Ltd acquired all of the issued shares (cum div.) of B Ltd for $200,000. At this date, the equity of B Ltd consisted of:

Share Capital: 120,000; General Reserve: 24,000; Retained Earnings: 16,000.

At 1 July 2019, one of the liabilities of B Ltd was a dividend payable of $10,000. This was paid on 1 September 2019. One of the assets recorded by B Ltd was goodwill of $5,000. A Ltd uses the partial goodwill method. A Ltd has goodwill of 14,000.

At 1 July 2019, all the identifiable assets and liabilities of B Ltd were recorded at amounts equal to their fair values except for:

Carrying amount Fair value

Plant (cost $100,000) $80,000 $88,000

Land 60,000 80,000

Inventories 40,000 52,000

Do the acquisition analysis