On 1 July 2021, Xero Ltd acquired 90% of the issued shares of Accounting Ltd for $750,000 when the equity of Accounting Ltd consisted of:

Share Capital

$400,000

Retained Earnings

$150,000

Asset Revaluation reserve

$50,000

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

Carrying Amount

Fair Value

Equipment (Cost $100,000)

$160,000

$200,000

Land

$560,000

$700,000

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

Required

Prepare Acquisition analysis as at 1 July 2021