SEMINAR QUESTION-PACKER - FOR FRIDAY SEMINAR On 1 October 20X2, Packer acquired 126 million shares in Scott for $297m, when Scott's retained earnings stood at $68 million. Statement of financial position as at 30 September 20X4 Non-current assets: Property, plant and equipment Investments Current assets: Inventories Trade receivables Bank Total assets Packer Scott $000 $000 472,000 300,000 299,000 0 120,000 96,000 146,400 90,000 27,000 24,000 1,064,400 510,000 Equity and liabilities Equity shares of $1 each 300,000 210,000 Retained earnings 476,400 117,000 Total equity Non-current liabilities: Loan notes Current liabilities: 776,400 327,000 180,000 108,000 Trade payables 108,000 75,000 Total equity and liabilities 1,064,400 510,000 The following information is relevant: (ii) (ii) At the date of acquisition, it was discovered that Scott had a piece of property with a fair value of $3 million above its carrying value. This was deemed to have a remaining useful life of 20 years at 1 October 20X2. During the year Packer sold goods to Scott for $20 million at a mark-up of 25%. At the year end, Scott still had one-fifth of this in inventory. At the year-end, Scott had a payable to Packer of $7 million. This did not match the receivable in Packer's books due to a cheque payment of $2 million which Scott sent on 28 September, which Packer had not yet received.