business combination question

8 Question 2: 10 Marks 9 A Ltd acquired all the assets and liabilities of B Ltd on 1 July 2021. At this date, the assets and liabilities of B Ltd consisted of: 2 Carrying Amount($) Fair value ($) 3 Cash 232,700 232,700 4 Inventory 46,500 61,500 5 Land 116,400 166,400 6 Plant 77,600 177,600 7 Accounts payable 50,000 50,000 8 Loans 100,000 100,000 9 Share capital(100,000 Shares) 223,200 0 Retained earnings 100,000 1 In exchange for these net assets, A Ltd agreed to: 2 1- issue 2 A Ltd shares for each B Ltd share with a price of $3.5 per share; costs of share issue were $950, paid by A Ltd. 3 2- transfer a patent to the former shareholders of B Ltd. the patent was carried in the records of ALtd at $90000 but was con A Ltd incurred $4200 in costs associated with the acquisition of these net assets. 5 Required: 1-Prepare an acquisition analysis in relation to this acquisition. 2- Prepare the journal entries in A Ltd to record th