QUESTION 12 On 1 July 20X4, Pepper Ltd acquired all of the issued capital of Salt Ltd. The shareholders equity of Salt Ltd at that date was: Issuedcapital$90,000

Retainedearnings45,000

At the date of acquisition, all of the carrying amount of net assets of Salt Ltd were recorded at fair value except the following. The land, originally costing $70,000, had a fair value of $96,000. The buildings had originally cost $220,000 and had accumulated depreciation of $55,000. The fair value of the buildings at the date of acquisition was $260,000. It has a remaining useful life of 8 years. As at 30 June 20X4, Salt Ltd had disclosed information relating to a legal action in the notes to