Question 1: Business combinations [35 marks ) Restless Ltd, a supplier of stationery items, agreed to acquire the business of a rival company , Young Ltd , taking over all identifiable assets and liabilities as at 1 July 2021 with the exception of the cash and accounts payable The consideration was payable by the issue of 30,000 shares in Restless Ltd for each share issued in Young Ltd. Restless shares had a fair value of $2.50 each and Young Ltd shares had a fair value of $2 each. In addition, Restless Ltd transferred the share portfolio to Young Ltd. The share portfolio had a fair value as at 1 July 2021 of $85,000 . The trial balances of the two companies as at 1 July 2021 were as follows . Restless Ltd Young Ltd Share capital (Issued shares : 100, 000 Restless 100,000 shares; Young 20,000 shares } _m Accounts payable Mortgage loan C ash Equipment (cost ) , 120,000 Accumulated Depreciation Inventory , 3,000 L a n d , snare pom seam Go odwill 20,000 4,000 171,000 171,000 212,000 212,000 All the identifiable net assets of Young Ltd were recorded by Young Ltd at fair value except for the equipment, which had a fair value of $80,000 (assume no tax effect}. The equipment had an expected remaining life of 5 years . The business combination was completed and Young Ltd went into liquidation. Restless Ltd incurred incidental costs of $900 in relation to the acquisition. Costs of issuing shares in Restless Ltd were $800 with an additional $1,600 paid to a share brokerage firm. Required 1. Calculate the goodwill {gain on bargain purchase , show your workings