X’ Ltd acquired on 1 July 2019 all the issued shares (cum div.) of ‘Y’ Ltd for $33?000. At this date, the equity of ‘Y’ Ltd was as follows. Share capital $20?000 General reserve 2?000 Retained earnings 5?000 All the identifiable assets and liabilities of ‘Y’ Ltd were recorded at amounts equal to their fair values except for the following. Carrying amount Fair value Plant (cost $22?000) $18?000 $18 600 Land 19?000 21?000 Inventories 2?000 2 800 The plant’s expected remaining useful life was 5 years with benefits being expected evenly over that period. The plant was sold on 1 January 2022 for $18 700. The land was sold in February 2021 for $25?000. Of the inventories, 90% was sold by 30 June 2020 and the rest by 30 June 2021. At 1 July 2019, ‘Y’ Ltd had recorded a dividend payable of $1?000 that was paid in September 2019. ‘Y’ Ltd also had some unrecorded assets, in particular the brands relating to the clothing sold in the teenage market. ‘X’ Ltd valued these brands at $1 200 and assessed them to have an indefinite life. In the notes to its financial statements at 30 June 2019, ‘Y’ Ltd disclosed a contingent liability relating to a guarantee it had made to one of its related companies. ‘X’ Ltd assessed the fair value of the guarantee payable as being $1?000. In August 2021, ‘Y’ Ltd was required to pay $250 in relation to the guarantee. All transfers to the general reserve made by ‘Y’ Ltd have been from retained earnings earned prior to 1 July 2019. The tax rate is 30%.