On 1 January 20×5, P Ltd paid $330,000 to acquire 60% of the ordinary shares of S Ltd when the fair value of S Ltd.’s identifiable net assets was represented by share capital of $200,000 comprising 200,000 ordinary shares and retained profit of $200,000, except for
(i) S Ltd.’s freehold land that was carried in its books as property, plant, and equipment at a cost of $200,000 but that had a market value of $250,000,
(ii) an unrecognized brand name that had a market value of $70,000, and
(iii) a contingent liability under which S Ltd had a 30% probability of paying a damage claim of $100,000 to a third party and a 70% probability of not having to pay at all.

The freehold land was sold by S Ltd to an independent party in July 20×7 for $280,000. The market value of the brand remained at $70,000 throughout all the years. The contingent liability was settled by S Ltd out-of-court in August 20×8 by paying the third party a sum of $20,000.

In December 20×8, P Ltd sold a piece of freehold land (which was carried in its books as property, plant, and equipment at a cost of $180,000) to S Ltd for $200,000. As of 31 December 20×8, the land was still being used as property, plant, and equipment by S Ltd.

In December 20×8, S Ltd sold inventory that cost $70,000 to P Ltd for a gross profit of $35,000, and this inventory was not sold to external parties by the end of 20×8.

All the companies adopt the Singapore Financial Reporting Standards and present annual financial statements with 31 December year-ends. All the relevant SFRS that were issued by the Accounting Standards Council Singapore as of January 2022 are assumed to have been effective on January 20×5.