Accounting by an acquirer  LO6 On 1 July 2020, Sonic Ltd acquired the following assets and liabilities from Screwdriver Ltd. Carrying amount Fair value Land $ 300 000 $350 000 Plant (cost $400 000) 280 000 290 000 Inventories 80 000 85 000 Cash 15 000 15 000 Accounts payable (20 000) (20 000) Loans (80 000) (80 000) In exchange for these assets and liabilities, Sonic Ltd issued 100 000 shares that had been issued for $1.20 per share but at 1 July 2020 had a fair value of $6.50 per share. Required 1. Prepare the journal entries in the records of Sonic Ltd to account for the acquisition of the assets and liabilities of Screwdriver Ltd. 2. Prepare the journal entries assuming that the fair value of Sonic Ltd shares was $6 per share.