Part 2: On 1 April 20X4 Wilderness acquired 100 per cent of the share capital of Mossel, whose only activity is the extraction and sale of spa water. Mossel had been profitable since its acquisition, but bad publicity resulting from several consumers becoming ill due to a contamination of the spa water supply in April 20X5 has led to unexpected losses in the last six months. The carrying amounts of Mossel's assets at 30 September 2005 are: $000 Brand (Quencher see below) 7,000 Land containing spa 12,000 Purifying and bottling plant 8,000 Inventories 5,000 32,000 The source of the contamination was found and it has now ceased. The company originally sold the bottled water under the brand name of 'Quencher, but because of the contamination, it has rebranded its bottled water as 'Phoenix'. After a large advertising campaign, sales are now starting to recover and are approaching previous levels. The value of the brand in the statement of financial position is the depreciated amount of the original brand name of 'Quencher'. The directors have acknowledged that $1.5 million will have to be spent in the first three months of the next accounting period to upgrade the purifying and bottling plant. Inventories contain some old 'Quencher' bottled water at a cost of $2 million; the remaining inventories are labelled with the new brand 'Phoenix'. Samples of all the bottled water have been tested by the health authority and have been passed as fit to sell. The old bottled water will have to be relabelled at a cost of $250 000, but is then expected to be sold at the normal selling price of (normal) cost plus 50 per cent. Based on the estimated future cash flows, the directors have estimated that the value in use of Mossel at 30 September 20X5, calculated according to the guidance in IAS 36, is $20 million. There is no reliable estimate of the fair value less cost to sell of Mossel. Required: Calculate the amounts at which the assets of Mossel should appear in the consolidated statement of financial position of Wilderness at 30 September 20X5. Your answer should explain how you arrive at your figures