Task Details On 1 July 2020, Fairway Ltd acquired all of the shares of Underhill Ltd, on a cum-div. basis, for $5,850,000. At this date, the financial statements of Underhill Ltd showed the following balances: Share capital - 500 000 shares General reserve Retained earnings Revaluation surplus Dividend payable $ 2,500,000 850,000 1,450,000 280,000 85,000 At acquisition date, all the identifiable assets and liabilities of Underhill Ltd were recorded at amounts equal to fair value except for the following: Inventory Land Plant (cost $900 000) Carrying amount $265,000 Fair value $325,000 950,000 1,220,000 540,000 680,000 The dividend payable at acquisition date was subsequently paid in August 2020. At 1 July 2020, Underhill Ltd's assets included $564,000 of recorded goodwill. All of the inventory on hand in Underhill Ltd at 1 July 2020 was sold in August 2020. In May 2022, the land was sold to Sunnyside Ltd for $1,450,000. The plant was estimated to have a further five-year life with no residual value. Goodwill was impaired by $40,000 at 30 June 2021. The tax rate is 30%. During the period 1 July 2020 to 30 June 2022, the following intragroup transactions have occurred between Fairway Ltd and Underhill Ltd: (T1) At 30 June 2022, Fairway Ltd approved and declared a final dividend of $75,000, and Underhill Ltd declared and approved a final dividend of $90,000. These dividends were paid on 31 July 2022. (T2) From February 2021 to June 2021, Fairway Ltd provided management services to Underhill Ltd for $70,000. Underhill Ltd paid $50,000 of this balance in May 2021, and the remaining $20,000 was paid in August 2021. (T3) In May 2021, Fairway Ltd sold inventory to Underhill Ltd for $83,000. Fairway Ltd had previously purchased the inventory for $59,000. By 30 June 2021, Underhill Ltd had sold one-quarter of this inventory to Billow Ltd for $28,000. (T4) On 1 July 2020, Underhill Ltd sold equipment to Fairway Ltd for $120,000. The equipment had been purchased by Underhill Ltd on the same day for $100,000. Equipment has a further five-year life, with zero residual value, and is depreciated on a straight-line basis. 2