On 1 July 2019 Olivia Ltd acquired 100% of the share capital (cum. div.) of Tina Ltd for $600,000. At that date, the relevant balances in the records of Tina Ltd were: < Share capital General reserve < Retained earnings < Dividend payable < SEE 372,000 30,000 108,000 12,000 At the date of acquisition all assets and liabilities of Tina Ltd were recorded in the accounting records at amounts equal to their fair values with the exception of the following assets: < < Land Machine < Carrying amount < $ Fair value $ < 48,000 57,600 26,400 38,400 Land was sold on 1 March 2022 for $66,000. The cost of the Machine was $48000 and had a further 4-year life as at the date of acquisition. Tina Ltd had reported a Contingent liability on 1 July 2019 in relation to claims by customers for damaged goods. Olivia Ltd placed a fair value of $10,800 on these claims. This claim was settled on 1 November 2021 for $6,000. < Additional information: < a) On 1 July 2021, Tina Ltd held inventories that had been sold to it by Olivia Ltd in the previous year for $24,000, at a mark-up of 25%. The inventory was sold to external parties by the end of 2022. < b) On 1 December 2021, Olivia Ltd purchased inventory from Tina Ltd for $21,600, recording a before-tax profit of $7,200. By 30 June 2022, Olivia Ltd sold 2/3 of these to external entities for $18,000. < c) On 1 January 2020, Tina Ltd sold an item of Equipment to Olivia Ltd for $38400. The Equipment original cost to Tina Ltd was $48,000 and had a carrying amount at the time of sale of $26,400. Equipment of this class is depreciated at 25% p.a. < d) All transfers from retained earnings to the general reserve by Tina Ltd were from post- acquisition earnings. < e) On realisation of the business combination valuation reserve, a transfer is made to retained earnings on consolidation. < f) The tax rate is 30%.