The following are the statement of financial position of P PLC and its subsidiary S LTD as at 30^th September 2013.

P PLC S LTD

$000 $000

Assets

Non-Current Assets

Property, plant and equipment 16,560 13,240

Investment in S LTD 8,300

Current assets 4,970 3,950

Total Assets 29,830 17,190

Equity and Liabilities

Equity

Ordinary share capital ($0.50) 10,000 6,000

Retained earnings 15,840 8,030

Total equity 25,840 14,030

Current liabilities 3,990 3,160

Total Equity and Liabilities 29,830 17,190

Notes to the Statement of Financial Position:

1. P PLC acquired 9,000,000 ordinary shares (75%) in S LTD on October 1, 2012 when the retained earnings of S LTD were $4,800,000.
2. The non-controlling interest in the net asset of S LTD at the date of acquisition were independently values at $2,800,000.
3. Goodwill was impaired in the amount of $40,000 for the year ended September 30, 201

Requirement:

1. Calculate the goodwill on acquisition of S LTD, and show the relevant journal entries.
2. Account for the impairment of $40,000
3. Calculate the goodwill on acquisition of S LTD if the non-controlling interest at the date of acquisition was based on their share of the subsidiarys net assets.