Pat acquired 80% of the issued share capital of Slap on 30 September 20X7. At the year end 31 December 20X7 the two companies have the following balance sheets: Pat Slap $'000 $'000 $'000 $'000 Investment in Slap 4,000 - Other assets 10,500 6,000 14,500 6,000 Share capital 6,000 1,000 Share premium - 500 Retained earnings 1 Jan 20X7 4,000 1,500 Profit for 20X7 2,000 1,000 6,000 2,500 12,000 4,000 Liabilities 2,500 2,000 14,500 6,000 Required Calculate the goodwill at the date of acquisition.

Pop acquires 75% of the issued share capital of Snap on 1 January 20X8 when Snap had a retained earnings balance of $1m. One year later the two companies have the following balance sheets. Pop Snap $'000 $'000 Investment in Snap 5,000 Other assets 10,500 9,200 15,500 9,200 Share capital 10,000 4,000 Retained earnings 1,500 2,200 11,500 6,200 Liabilities 4,000 3,000 15,500 9,200 Required Produce the consolidated balance sheet of Pop and its subsidiary as at 31 December 20X8