On 1 January 2000, K Ltd acquired 60% of the shares in V ltd for $400,000. Consideration took the form of cash $300,000, and shares with a fair value of $200,000 At that date the owner's equity of V ltd comprised Shares capital $300,000 Retained earnings $200,000 $100,000 Revaluation surplus Total $600,000 On 1 January 2000, the fair values of all assets and liabilities of V Ltd were recorded in fair value with the exception of inventory which had a fair value $50,000 greater than book value. The inventory was all sold before 30 June 2000. • Both companies use the periodic method to account for inventory. The company income tax rate is 30%. K Ltd has a financial year end of 30 June. The fair value of the non-controlling interest is estimated to be $260,000. K Ltd uses the 100% goodwill method to measure NCI.