On 1 July 2020 Techniq invested in 70% of the ordinary share capital of Panels Ltd (Panels), a supplier of doors for the 'One'. At this date, Technig paid 60m in cash. Additional information As part of the investment in 14 million shares of Panels, Technic offered 1 share in Technig for every 4 shares acquired. On 1 July 2020 the market value of each Techniq share was 7.20. Techniq has agreed to pay 8m in cash in 3 years' time. An appropriate discount rate is 6%. The net assets of Panels in the individual company accounts on 1 July 2020 was 74m. At this date, the carrying value of net assets were deemed to be equal to their fair values with except for patented technology, an intangible asset, details about which are noted below. At the date of acquisition, an independent specialist concluded that the value of Panels' patented technology was 8m. This intangible asset is internally generated and has a useful economic life at the acquisition date of 12 years. At the date of acquisition, Panels had disclosed in their latest financial statements, a contingent liability for a possible legal case with a value of 4m. This possible legal case had not been settled at the date of acquisition. Techniq has elected to use the fair value method for determining the non-controlling interest for the acquisition of Panels. On 1 July 2020, the market value of each share in Panels was 6.80, which included a control premium of 0.50. Required: a) Calculate the value of goodwill at acquisition. You should show your workings. (18 marks) b) Explain the accounting treatment and classification of goodwill arising on acquisition. (7 marks) The maximum word limit for part b) is 280 words. c) Discuss why companies may need to write off goodwill. As part of your answer, you should specifically consider the impact on car manufacturers arising from Covid-19. (15 marks) The maximum word limit for part c) is 600 words. d) Evaluate the accounting treatment for intangible assets (other than goodwill) and contingent liabilities within consolidated financial statements. (20 marks)