On 1 July 2023, Brown Ltd acquired the following assets and liabilities from Sloan Ltd. Carrying...

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On 1 July 2023, Brown Ltd acquired the following assets and liabilities from Sloan Ltd. Carrying amount Land Plant (cost $800 000) Inventories Cash Accounts payable Loans $ 600 000 560 000 160 000 30 000 (40 000) (160 000) $ Fair value 700 000 580 000 170 000 30 000 (40 000) (160 000) In exchange for these assets and liabilities, Brown Ltd issued 200 000 shares that had been issued for $2.20 per share but at 1 July 2023 had a fair value of $4.50 per share. Required 1. Prepare the journal entries in the records of Brown Ltd to account for the acquisition of the assets and liabilities of Sloan Ltd. 2. Prepare the journal entries assuming that the fair value of Brown Ltd shares was $4 per share. On 1 July 2023, Brown Ltd acquired the following assets and liabilities from Sloan Ltd. Carrying amount Land Plant (cost $800 000) Inventories Cash Accounts payable Loans $ 600 000 560 000 160 000 30 000 (40 000) (160 000) $ Fair value 700 000 580 000 170 000 30 000 (40 000) (160 000) In exchange for these assets and liabilities, Brown Ltd issued 200 000 shares that had been issued for $2.20 per share but at 1 July 2023 had a fair value of $4.50 per share. Required 1. Prepare the journal entries in the records of Brown Ltd to account for the acquisition of the assets and liabilities of Sloan Ltd. 2. Prepare the journal entries assuming that the fair value of Brown Ltd shares was $4 per share.

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