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Question: on 1 july 2019 adelaide ltd acquired 75 of the...

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On 1 July 2019, Adelaide Ltd acquired 75% of the issued shares of Canberra Ltd for $720,000. At this date, the equity of Canberra Ltd consisted of share capital of $400,000 and retained earnings of $210,000. All the identifiable assets and liabilities of Canberra Ltd were recorded at amounts equal to fair value except for the following.



Carrying Amount 

Fair value 

Machine (cost $50,000)



Plant (cost $400,000)







Canberra Ltd also had an internally generated patent not recognised at 1 July 2019Adelaide Ltd assessed the fair value of that patent at $80,000. The tax rate is 30%.



a. Prepare the acquisition analysis at 1 July 2019 assuming that Adelaide Ltd used the full goodwill method and the fair value of the non‐controlling interest at 1 July 2019 was $220,000?
b. Calculate the Control premium for the parent?
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