Problem 1: Goodwill and R.E. Calculations PRT acquired 100% of SUBs ordinary shares on 1 January 2011 for $1,136,000 when SUBs retained earnings were $260,000. At 1 January 2011 the fair value of the net assets of SUB exceeded their carrying value by $110,000. The remaining useful life of these assets was 11 years from acquisition. SUB has not issued any new shares since acquisition by PRT. SUB is PRTs only subsidiary. PRT calculated that goodwill in its subsidiary was impaired by 20% at 31 December 2013. The equity of SUB as at 31 December 2013: $000 Ordinary share capital 430 Share premium 86 Retained earnings 324 840 The retained earnings of PRT were $2,100,000 at 31 December 2013. Required: Calculate the amount that PRT should include in its consolidated statement of financial position as at 31 December 2013 for: (i) Goodwill (ii) Group retained earnings