Question 3 (20 marks) On 1 July 2019, Ocean Ltd acquired all the issued shares of River Ltd. Ocean Ltd paid $30 000 in cash and 20 000 shares in Ocean Ltd valued at $3 per share. At this date, the equity of River Ltd consisted of $66 000 share capital and $6000 retained earnings. At 1 July 2019, all the identifiable assets and liabilities of River Ltd were recorded at amounts equal to their fair values except for: Plant (cost $150 000) Carrying amount $120 000 Fair value $123 000 Patents 90 000 105 000 Inventory 18 000 22 500 The plant was considered to have a further 5-year life. The patents were sold for $120 000 to an external entity on 10 December 2019. The inventory was all sold by 30 June 2020. Additional information: (a) Ocean Ltd sells certain raw materials to River Ltd to be used in its manufacturing process. At 1 July 2020, River Ltd held inventory sold to it by Ocean Ltd in the previous year at a profit of $600. In addition, during the 2020-21 year, Ocean Ltd sold inventory to River Ltd for $21 000. None of this was on hand at 30 June 2021. (b) River Ltd also sells items of inventory to Ocean Ltd. During the 2020-21 year, River Ltd sold goods to Ocean Ltd for $4500. At 30 June 2021, inventory which had been sold to Ocean Ltd at a profit of $300 was still on hand in Ocean Ltd's inventory. (c) On 1 July 2020, River Ltd sold an item of plant to Ocean Ltd for $15 000. This plant had a carrying amount in the records of River Ltd of $14 000 at time of sale. This type of plant is depreciated at 10% per annum on cost. (d) The tax rate is 30%. Required: As Ocean Ltd's Group Accountant, you are asked to: (1) Provide a financial analysis to calculate goodwill acquired or a gain on bargain purchase; (3 marks) (2) Prepare all the relevant consolidation journal entries at 30 June 2021. (17 marks)