Question 16 1 points Save Answer On 1 July 2019, Silver Ltd, a reporting entity, acquired all of the issued shares of Brumby Ltd. As part of the settlement, Silver Ltd agreed to pay $1,700,000 on 1 July 2019 and $1,284,000 payable on 1 July 2020. The appropriate discount rate was 7% per annum. Silver Ltd also issued 475,000 shares of Silver Ltd to the shareholders of Brumby Ltd. At acquisition date, the fair value of the ordinary shares of Silver Ltd were $2.50 and the fair value of the ordinary shares of Brumby Ltd were $3.00. Brumby Ltd's shareholders' equity on 1 July 2019 consisted of the following: Issued capital $1,900,000 Carrying Fair Value Amount Retained earnings $650,000 Total shareholders' equity $ 2,550,000 Machinery $1,120,000 $1,400,000 Brumby Ltd purchased the plant for $1,500,000. On 1 July 2019, the plant had an At 1 July 2019, all of Brumby Ltd's net assets were recorded at fair value, except the following items: estimated remaining useful life of 7 years with zero residual value. Brumby Ltd is depreciating the asset straight-line over its useful life. The directors of Silver Ltd believe that the goodwill relating to the acquisition of Brumby Ltd was impaired by $140,000 during the year ended 30 June 2020. Both Silver Ltd and Brumby Ltd use the cost model for the valuation of assets, so any fair value adjustments will be completed as consolidation adjustments. The company income tax rate is 30% In preparing the acquisition analysis, calculate the recorded value of equity acquired in Brumby Ltd