Green Ltd purchased 80 per cent of the issued capital for consideration of $4 000 000 and in the process gained control over Maroon Ltd on 1 July 2015. The fair value of the net assets of Maroon Ltd at purchase was represented by:
Share capital $3 220 000
Retained earnings 740 000
Total 3 960 000
At acquisition date all the identifiable assets and liabilities of Maroon Ltd were recorded at amounts equal to fair value.
At 1 July 2015, the fair value of the non-controlling interest was $1 000 000 and Green Ltd adopts the full goodwill method.
Required: Prepare acquisition analysis on 1 July 2015.