On 1 July 2022 Terry Ltd acquired 25% of the ordinary issued share capital of Monty Ltd for $300 000. This investment gave rise to significant influence. (1 mark) 3 The share capital and reserves of Terry Ltd at 1 July 2022 were: O Share capital General reserve Retained earnings $500 000 200 000 384 000 $1 084 000 12 All the identifiable net assets of Monty Ltd were stated at fair value at the date of acquisition except for equipment whose carrying value was $30 000 less than the fair value. The tax rate is 30%. Goodwill arising on Terry's acquisition of Monty was: S 1) $21,500 2) $29,000 3) $23,750 $25,000