Question 1 On 1 July 2023, Row Ltd acquired 70% of the shares of Lab Ltd for $340,000. At this date, the equity of Lab Ltd was: Share capital $250,000 General reserve $90,000 Retained earnings $110,000 At acquisition date, all the identifiable assets & liabilities of Lab Ltd were recorded at fair value. At 30 June 2025, the equity of Lab Ltd was: Share capital $250,000 General reserve $110,000 Retained earnings $170,000 A transfer from pre-acquisition retained earnings to general reserve of $30,000 was made during the year ended 30 June 2025. Lab Ltd recorded a profit of $40,000. Assuming partial goodwill method is used, conduct the acquisition analyse and calculate the goodwill of the acquisition Question 2 Dam Ltd bought 40% of the issued shares of Pat Ltd for $75,000 cash on 1 July 2021. Dam Ltd has significant influence over the investee. The equity of Pat Ltd at the acquisition date was : Share capital $55,000 Retained earnings $190,000 All the identifiable assets & liabilities of Pat Ltd were recorded at fair value. Profits and dividends for the years ended 30 June 2022 to 2024 were: Profit before tax Income tax expense 2022 $ 120 000 105 000 $ 45000 37 500 Dividends paid $ 120 000 30 000 15 000 2023 2024 90 000 30 000 What is the carrying amount of the investment in Pat Ltd at 30 June 2024 ? Show all working out