Question 2 (40 Marks) The extrict of stutement of financial position for the year ended 31 Decenber 2022 for Pendot Ltd and Slate Lud are as follows: Extract of statement of fimancial position for the year ended 31 December 2022 Ou 01 January 2022, Peridot Ltd acquired 504,000 ordinary shares of Slate Lid and as a result, Peridat Ltd holds 80% shares in Slate Lud. The perchase consideration was as folliaws: - Cash paid $650,000 - A deferred cash settlemen to be paid in five years' time of $250,000 - By an exchange of three stares in Peridon Lud for every five shares in Slate Lid. The market price of Peridot Lad share at the date of aciquisition was $2.5 and the market price of each Slate Lid share at the date of acquisition was \$ 3.25 Legal fees associated with the acquisition were $105,000. The discont rate of Peridot Lid is 11 \%. (a) Calculate the fair value consideration (Costs of investment) transferred to achuire control of Slate L.td at the date of acquisition. Your answer should include a brief explanation if any of the ahove issue(s) iv/are not required to be accounted in your working(s). [10 Marks] On the acquisition date, the retained earnings of Slate Lid stood at $217,500 and share capital was $ 630,000. Slate Litd had developed an innovative software that has not been recognized in its financial statemsents. The directors of Peridat Lad are of the opinion that the software should be accounted. The software had a fair value of $425,000 and a remaining term four years to go as from the date of acquisition. The carrying value of Plant and equipment was in excess by 590,000 on the accuuisition date. Plant and equipment had a lifetime of three yeats at the acquisition date. Included within the 3 intangible assets of State Lud (at the acquisition and reporting date) is goodwill of $15,000 which arose on the purchase of the trade and assets of a sole-trader business. (b) Calculate the net assets of Slate Ltd at the date of acquisition (01 January 2022) and at the reperting date (31 December 2022). [ 10 Marks] Goodwill has been impaired by 575,000 at the reporting date (31 December 2022). (c) Calculate the goodwill using the proportion method at the date of acquisition (01 January 2022). [ 5 marks] (d) Calculate the non-controlling interest (NCI) as at 31 December 2022. [ 2 Marks] Peridot Lud has recently appointed an accountant, Mr Shale, following the resignation of the previous group accountant. When Mr Shale was preparing the group accounts for the year ended 31 Decembler 2022, he found that only the cash consideration of $650,000 has been accountedi. The par value of each ardinary share for Peridot Lid is 51 . (e) Calculate the group retained earnings as at 31 December 2022. [3 Marks (f) Prepare an extract of equity (Ordinary shares, Share premimm, Retained earnings and NCI) and tiahilities section of the consolidated statement of financial position as at 31 December 2022 showing clearly haw the deferred payment and shares exchangge should be accounted. [10 Marks]