Pepper Ltd owns 80% of the shares of Salt Ltd, which it acquired on 1 July 2018 for $6,000, when the shareholders equity of Salt Ltd consisted of Share capital: $2,500 and Retained earnings: $4,600 respectively. All assets and liabilities of Salt Ltd were fairly stated at acquisition date, except for PPE, which was undervalued by $300 and had a remaining life of 10 years. The directors believe that there has been an impairment loss on the goodwill on consolidation of $100 as at 30 June 2019.

a. Show the acquisition analysis at the date of purchase.