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for $17,000,000 Parrotfish Limited acquired 60% of the issued shares of Shrimpfish Limited on January 1, 2015. The shareholders' equity of Shrimpfish Limited on January 1, 2015 were as follows: Issued share capital Retained profits $15,000,000 $6.000,000 On January 1, 2016, Parrotfish Limited acquired 25% of the issued shares of Angelfish Limited for $2,300,000 when the retained profits of Angelfish Limited was $1,500,000 Additional information: (a) At the date of acquisition, the carrying amounts of all identifiable asset and liabilities of Shrimpfish Limited were equal to their fair value except for a piece of land and a piece of equipment owned by Shrimpfish Limited. The fair value of the equipment was $600,000 in excess of its carrying amount. Shrimpfish Limited used the historical cost model for its non-current assets. The equipment had remaining useful life of 12 years. This revaluation was not reflected in the books of Shrimpfish Limited. (b) For the purpose of acquisition, a piece of land of Shrimpfish Limited was revalued to give a valuation of $900,000 in excess of its carrying value. However, this valuation had not been reflected in the books of Shrimpfish Limited at December 31, 2017 It was the group policy not to charge depreciation on land. (c) On January 1, 2017, a motor van owned by Parrotfish Limited was sold to Shrimpfish Limited. The information about the sales was as follows: Selling price Original cost in the books of Parrotfish Limited Accumulated depreciation in the books of Parrotfish Limited Remaining useful life for Shrimpfish Limited at transaction date6 years $900,000 $800,000 $200,000 The depreciation expense was included in other operating expenses (d) The difference in current account between Parrotfish Limited and Shrimpfish Limited was caused by cash in transit. (e) During 2017, Shrimpfish Limited sold goods to Parrotfish Limited. The information for $17,000,000 Parrotfish Limited acquired 60% of the issued shares of Shrimpfish Limited on January 1, 2015. The shareholders' equity of Shrimpfish Limited on January 1, 2015 were as follows: Issued share capital Retained profits $15,000,000 $6.000,000 On January 1, 2016, Parrotfish Limited acquired 25% of the issued shares of Angelfish Limited for $2,300,000 when the retained profits of Angelfish Limited was $1,500,000 Additional information: (a) At the date of acquisition, the carrying amounts of all identifiable asset and liabilities of Shrimpfish Limited were equal to their fair value except for a piece of land and a piece of equipment owned by Shrimpfish Limited. The fair value of the equipment was $600,000 in excess of its carrying amount. Shrimpfish Limited used the historical cost model for its non-current assets. The equipment had remaining useful life of 12 years. This revaluation was not reflected in the books of Shrimpfish Limited. (b) For the purpose of acquisition, a piece of land of Shrimpfish Limited was revalued to give a valuation of $900,000 in excess of its carrying value. However, this valuation had not been reflected in the books of Shrimpfish Limited at December 31, 2017 It was the group policy not to charge depreciation on land. (c) On January 1, 2017, a motor van owned by Parrotfish Limited was sold to Shrimpfish Limited. The information about the sales was as follows: Selling price Original cost in the books of Parrotfish Limited Accumulated depreciation in the books of Parrotfish Limited Remaining useful life for Shrimpfish Limited at transaction date6 years $900,000 $800,000 $200,000 The depreciation expense was included in other operating expenses (d) The difference in current account between Parrotfish Limited and Shrimpfish Limited was caused by cash in transit. (e) During 2017, Shrimpfish Limited sold goods to Parrotfish Limited. The information

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