On 30 june 2019, Amazing ltd acquired all the assets and liabilities of pears ltd. Details of the consideration transferred by Amazing ltd are as follows a) Cash of $325,000 and 60,000 shares in amazing ltd were issued. The share price on 30 june 2019 was $5 per share. b) Cost of issuing the shares was $1,150 c) Legal fees and associated costs with the acquisition totalled $3,200 At the date of acquisition, the carrying values of all assets and liabilities presented on the statement of financial position of pears ltd were as follows Assets Carrying amount Land $300,000 Plant, property and equipment $210,000 Accounts receivable $35,000 Inventory $40,000 Liabilities: Loan $45,000 The fair values of all assets and liabilities presented above are the same as their carrying values. The exceptions are the land which had a fair value $40,000 greater than the carrying value, and the accounts receivable which had a fair value $25,000 greater than the carrying value. In addition, pears ltd is currently being sued by a previous customer. The fair value of the expected damage is $25,000 Required: a) Discuss any two of the requirements to measure all assets acquired and liabilities assumed at the fair value by amazing ltd. b) Analyze and provide the necessary details for the information given and determine the goodwill or bargain from the purchase transactions (show all workings) c) Prepare the necessary journal entries for the business combination on the acquisition date using the direct method (narrations are required)

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