23 marks Question #4 On 1 July 2016, the financial position of Thurman Ltd was as follows: Carrying amount Fair value Assets 200 000 $200 000 Cash 800 000 800 000 Accounts receivable 1 600 000 2 100 000 Plant (600 000) Accumulated depreciation plant 850 000 900 000 Fixtures & fittings 100 000 fixtures & fittings Accumulated depreciation 500 000 1 100 000 Land 610 000 800 000 Vehicles (200 000) Accumulated depreciation vehicles $5 000 000 Total assets Equity 2 500 000 Share capital 100 000 shares 2 000 000 Retained earnings 4 500 000 Total equity he es ap remo dcop Accounts payable pnitor Liabilities porntble eatelato 100 000 100 000 Mobile pliones end ea on pl 400 000 400 000 Loans 500 000 d or belp a Total liabilities Total equity and liabilities Dnt e Jad aF $5 000 000 ait Uma Ltd acquired all the assets and assumed all the liabilities of Thurman Ltd on 1 July 2016. In exchange, Uma Ltd agreed to: . issue 5 Uma Ltd shares for every Thurman Ltd share held. Uma Ltd shares were assessed to have a fair value of $8 per share. Costs of share issue were $600. transfer a patent to the former shareholders of Thurman Ltd; the patent had been internally generated by Uma Ltd and was carried at S400 000. It was considered to have a fair value of $1 200 000. 3 pay cash of $2.00 per share to the former shareholders of Thurman Ltd for each share held in Thurman Ltd At 30 June 2016, Thurman Ltd had reported a contingent liability relating to a guarantee given by that comfpany to another entity. Thurman Ltd did not record the guarantee as a liability because of the difficulty of measuring the liability. The fair value of this contingent liability Uma Ltd incurred $9000 in costs in relation to accounting and legal fees in relation to its acquisition of Thurman Ltd. was assessed as $20 000. Required A. Prepare an acquisition analysis for Uma Ltd's acquisition of Lord Itd on 1 July 2015 (5 Marks) B. Prepare the journal entries In the records of Uma Ltd In relation to it's acquistion of Thurman Ltd at 1 July 2016 (18 Marks) 0