Parent Ltd paid $210,000 for 75% of the shares of Subsidiary Ltd on 1 July 2021. All identifiable assets and liabilities of the subsidiary Ltd were recorded at fair value at acquisition date.

At acquisition date, the equity of Subsidiary Ltd consisted of the following.

Share capital $100,000

Retained earnings $ 80,000

The Non-controlling interest in Subsidiary Ltd was considered to have a fair value of $53,000 and Parent Ltd uses the full goodwill method.

Assume an income tax rate of 30%.

Required

Prepare the acquisition analysis at 1 July 2021 clearly showing the fair value of goodwill in subsidiary and premium paid by the Parent Ltd.