Tamarama Ltd acquires 100 per cent of Bronte Ltd on 1 July 2021. Tamarama Ltd pays the shareholders of Bronte Ltd the following consideration:On 1 July 2021 Bronte Ltd’s statement of financial position shows total assets of $700 000 and liabilities of $300 000. The fair value of the assets is $800 000.

REQUIRED

Has any goodwill been acquired and, if so, how much?

Transcribed Image Text:

Cash $70 000 Plant and equipment fair value $250 000; carrying amount in the books of Tamarama Ltd $170 000 Land fair value $300 000; carrying amount in the books of Tamarama Ltd $200 000 There are also legal fees of $35 000 involved in acquiring Bronte Ltd.