On 1 July 2022, Ambrose Ltd acquired all voting rights of Beatrice Ltd by purchasing its shareholders' equity for $40,000 cash and issuing 50,000 shares at $1 each. Beatrice had $66,000 share capital and $10,000 retained earnings at that date. On 1 July 2022, the following assets were at carrying value on the balance sheet, which differed from fair value.

\fAmbrose Beatrice Cr Dr Cr Sales revenue 76,250 85,950 Cost of sales 41,400 53,350 Trading expenses 5,000 10,500 Office expenses 6,000 5,500 Depreciation expenses 1,800 3,900 Proceeds on sale of plant 9,000 15,000 Carrying amount of plant 7,500 12,000 sold Income tax expenses 2,100 7,300 Share capital 87,000 66,000 Retained earnings 48,000 31,500 Current liabilities 21,100 10,500 Deferred tax liability 11,000 15,000 Plant 57,000 105,000 Accumulated depreciation 19,800 31,200 of Plant Intangibles 12,000 11,100 Deferred tax asset 11,100 9,450 Shares in Beatrice 90,000 Inventory 30,000 24,600 Receivables 8,250 12,450 272,150 272,150 255,150 255,150