On 1 July 2021 Aries Ltd acquired 63,000 shares in Nova Ltd (90,000 shares) for $4 650 000. At acquisition date, the shareholders equity of Nova Ltd consisted of: Share capital $1 125 000 Retained earnings at 1 July 2021 $900 000 Capital reserve $1 800 000 At 30 June 2021, land is recorded in the balance sheet of Nova Ltd. at costs of $500 000. A note attached to the financial statements discloses a recent value of this land as $950 000, based on an independent valuation dated 20 June 2021. The Aries Ltd group uses the cost basis to measure land, consequently the fair value adjustment for Nova Ltds land is made on consolidation. The rate of company income tax is 30%.

Required:

i) Complete the acquisition analysis on 1 July 2021 for Aries Ltds investment in Nova Ltd as required by AASB3 and determine the amount of goodwill or gain on bargain purchase following the fair value method of goodwill.

(ii) Prepare the acquisition journal entries as required by AASB10 at 1 July 2021.