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ABC Ltd acquires 100 per cent of RedCarpet Ltd on 1 July 2021. ABC Ltd pays the shareholders of RedCarpet Ltd the following consideration:
| Cash | 35 000 |
| Plant and equipment | fair value $125 000; carrying amount in the books of ABC Ltd $85 000 |
| Land | fair value $150 000; carrying amount in the books of ABC Ltd $100 000 |
There are also legal fees of $95 000 involved in acquiring RedCarpet Ltd.
On 1 July 2021 RedCarpet Ltd’s statement of financial position shows total assets of $300 000 and liabilities of $150 000. The fair value of the assets is $400 000.
Required:
Has any goodwill been acquired and, if so, how much?
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