On 8 August 2022, BHP Group Limited (ASX: BHP) proposed to acquire 100 percent of the outstanding shares of OZ Minerals Limited (ASX: OZL).

1. Did BHP recognize any goodwill or bargain purchase gain arising from the acquisition of OZL? Based on AASB 3, apply the purchase method and prepare an acquisition analysis to find out how much the goodwill is. Do you think the size of the goodwill/bargain is too large or too small? What does this recognized goodwill/bargain tell you about BHPs assessment of the assets and liabilities of OZL?
2. Like many mining companies, one of the major liabilities of OZL is the Provisions account, relating to its obligations for mine rehabilitation, restoration and dismantling. However, uncertainty exists as to the amount of rehabilitation obligations, which is subject to the changes in many factors. Assume that at the date of acquisition, the carrying amount of Provisions in the books of OZL is $130 million while BHP assessed the Provisions as having a fair value of $380 million. How would BHP account for this difference in value for the Provisions account at the date of acquisition? What if in a subsequent year after the acquisition, the Provisions account is settled by OZL for $150 million? Record all necessary adjusting entries as at the date of acquisition and in the year of the settlement. Include any tax effect entries and provide a logical explanation for each line entry you have provided.