On 1 July 2020, Hood Ltd acquired 75% of the issued shares of Robin Ltd for $375,000 when the equity of Robin Ltd consisted of:

Share Capital

$200,000

Retained Earnings

$75,000

Asset Revaluation reserve

$25,000

At the acquisition date all the identifiable assets and liabilities of Robin Ltd were recorded at fair value except for the following assets:

Carrying Amount

Fair Value

Equipment (Cost $100,000)

$80,000

$100,000

Land

$280,000

$350,000

The NCI at acquisition date is measured based on the proportionate share of the identifiable assets and liabilities in Robin Ltd. The tax rate is 30%.

Required

acquisition analysis as at 1 July 2020(6 Marks)