Question 1 (25 marks) On 1 July 2019 Parent Ltd acquired all the issued share capital of Subsidiary Ltd (Sub Ltd) giving in exchange 100 000 shares in Parent Ltd, these having a fair value of $5 per share. At the acquisition date, the statements of financial position of Parent Ltd and Sub Ltd, and the fair values of Sub Ltd's assets and liabilities, were as follows: Sub Ltd EQUITY AND LIABILITIES Equity Share capital Retained earnings Total equity Liabilities Parent Ltd Carrying amount Carrying amount $ 550000 $300000 350 000 140000 900 000 440000 Fair value Provisions 30000 60000 $ 60000 Payables 27000 34000 34000 Tax liabilities 10000 6000 6000 Total liabilities 67000 100000 Total equity and liabilities $ 967000 $540000 ASSETS $ 120000 $150000 170000 Land 620000 480000 330000 Equipment ulated.depreciation. (380000) (170000) 500.000