Question Six Atlanta Ltd acquires 80 percent (80%) of Colorado Ltd for a cash price of $14 000 000. At that time, the share capital and reserves of Colorado Ltd were: Share capital Retained earnings Total Equity $7 000 000 $3 000 000 $10 000 000 Pursuant to AASB 3 Atlanta Ltd measured any non-controlling interest in the acquiree at fair value. REQUIRED a) Calculate the amount to be shown in the consolidated statement of financial position for goodwill. You may develop a table to show your calculation of goodwill at the acquisition date. Show the calculation. (15 marks) b) There are two methods to measure goodwill in the acquiree financial statements: 1) fair value and 2) proportionate share of the acquiree's identifiable net assets. What are some of the implications of allowing the group to have two options in accounting for goodwill on consolidation? (3 marks) [18 marks]