QUESTION 1- Explain what a pre-acquisition adjustment is and why this adjustment is necessary.

QUESTION 2-Explain the three key elements of control.

QUESTION 3- On 30 June 2020, Apple Ltd acquired all of the assets and liabilities of Pie Ltd. In exchange for these assets and liabilities, Apple Ltd issued 200 000 shares that at date of issue had a fair value of $5.00 per share. Costs of issuing these shares amounted to $5000. Legal costs associated with the acquisition amounted to $2000.

The asset and liabilities of Pie Ltd at the acquisition date were as follows:

Carrying amount Fair value

Assets

Cash $2 000 $2 000

Accounts receivable 10 000 10 000

Inventory 64 000 68 000

Equipment 320 000 232 000

Accumulated depreciation - equipment (96 000)

Patents 240 000 280 000

Liabilities

Accounts payable (16 000) (16 000)

Debentures (64 000) (64 000)

Required

A. Prepare the acquisition analysis at 30 June 2020 for the acquisition of Pie Ltd by Apple Ltd.

B. Prepare the journal entries to record this acquisition.

Note send me the clear, without plagiarism and good explanation as soon as possible please. Make sure question 3 journal entrires are clear and correct amount please

Send me the answer plz ASAP