Calculate the net assets of Lactus Ltd at fair value on 1 September 2022, given its share capital, retained earnings, and revaluation surplus.

Here are the calculations based on the information provided:

PART A: 60% Acquisition (Subsidiary)

Step 1: Calculate the net assets of Lactus Ltd at fair value on 1 September 2022.
The net assets at fair value are the sum of the equity balances and the fair value adjustment for the land.

\begin{align*} Share capital &= R720\,000 \\ Retained earnings &= R2\,185\,000 \\ Revaluation surplus (existing) &= R1\,265\,000 \\