Share capital

   100,000

Retained earnings

   175,000

Plant

     21,000

Computer equipment

     14,000

Net fair value of identifiable assets and liabilities

   310,000

Net fair value of identifiable assets and liabilities

   310,000

Consideration transferred

   250,000

Bargain purchase

     60,000

Retained earnings

   175,000

Share capital

   100,000

BCVR

     35,000

Gain on bargain purchase

     60,000

Shares in Smarty Ltd.

   250,000

Accumulated depreciation on plant

     90,000

Plant

     60,000

Deferred tax liability

       9,000

BCVR

     21,000

Depreciation expense

       6,000

Accumulated depreciation

       6,000

Deferred tax liability

       1,800

Income tax expense

       1,800

Accumulated depreciation on computer equipment

     50,000

Computer equipment

     30,000

Deferred tax liability

       6,000

BCVR

     14,000

Depreciation expense

       4,000

Accumulated depreciation

       4,000

Deferred tax liability

       1,200

Income tax expense

       1,200

Share capital

             120,000

General reserve

               25,000

Retained earnings

               55,000

Land

               21,000

Inventories

                  5,320

Machinery

                  2,800

Vehicles

                  4,200

Net fair value of identifiable assets and liabilities

             233,320

Consideration transferred

             250,000

Net fair value of identifiable assets and liabilities

             233,320

Goodwill

               16,680

Goodwill

               16,680

Goodwill recorded

               15,000

Unrecorded goodwill

                  1,680

Accumulated depreciation Machinery

               34,000

Machinery

             30,000

Deferred tax liability

                1,200

BCVR

                2,800

Depreciation expense

                     350

Retained earnings

                  1,050

Accumulated depreciation

                1,400

Deferred tax liability

                     420

Income tax expense

                   105

Retained earnings

                   315

Land

               30,000

Deferred tax liability

                9,000

BCVR

             21,000

Inventory

                  7,600

Deferred tax liability

                2,280

BCVR

                5,320

Accumulated depreciation Vehicles

               11,000

Vehicles

                5,000

Deferred tax liability

                1,800

BCVR

                4,200

Depreciation expense

                     700

Retained earnings

                  2,100

Accumulated depreciation

                2,800

Deferred tax liability

                     840

Income tax expense

                   210

Retained earnings

                   630

Goodwill

                  1,680

BCVR

                1,680

Equipment

                  3,000

Loss on sale of equipment

                3,000

Income tax expense

                     900

Deferred tax asset

                   900

Depreciation expense

                     300

Accumulated depreciation

                   300

Deferred tax asset

                        90

Income tax expense

                      90

Proceeds on sale of machinery

                  7,800

Carrying amount of plant sold

                7,000

Cost of sales

                   800

Interest income

                  2,000

Interest expenses

                2,000

Retained earnings

                     875

Income tax expense

                     375

Cost of sales

                1,250

Retained earnings

                  5,000

General reserve

                5,000

Retained earnings

               55,000

General reserve

               25,000

Share capital

             120,000

Business combination valuation reserve

               50,000

Shares in Sing Song Ltd.

           250,000