Quiz navi Question 1 Practical Question: (6 Marks) Answer saved Marked out of 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: Man 6.00 Carrying Amount Fair value 2 P Flag question Cash 237,500 237,500 71,250 86,250 10 Inventory 11 Land 304,000 354,000 Plant 161,500 261,500 Fifuch atter Accounts payable 28.500 28,500 Time left 0 Loans 66,500 66,500 Share capital(100000 Shares) 579,250 Retained earnings 100,000 Webca In exchange for these net assets, A Ltd agreed to: 1- issue 2 A Ltd shares for each B Ltd share with a price of $1.5 per share; costs of share issue were $1200 2- transfer a patent to the former shareholders of B Ltd. the patent was carried in the records of ALtd at $80000 but was considered to have a fair value of $110000 A Ltd incurred $2300 in costs associated with the acquisition of these net assets. Required: 1- Prepare an acquisition analysis in relation to this acquisition. (2.25 Marks) 2- Prepare the journal entries in A Ltd to record the acquisition at 1 July 2021. (3.75 Marks)