Please refer below:

b] The accountant for Bingo Ltd, Ms Diva, has sought your advice on an accountancy issue that has been mystifying her. 1li'iihen preparing the acquisition analysis relating to Bingo Ltd's acquirement of Tasha Ltd, she calculated that there was a gain on bargain purchase of Sill-,D-D. Being unsure of how to account for this, she was informed by accounting colleagues that this should be treated as income. However, she figured that this would inuence the consolidated prot in the first year after acquisition date. For example, if Tasha Ltd reported a prot of 550,000, then consolidated profit would he Sl}. She is unsure of whether this prot is all post acquisition prot or a mixture of preacquisition prot and postacq uisition profit. Compile a detailed report on the nature of an excess, how it should be accounted for and the effects of its recognition on subsequent consolidated financial statements