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4.. On 1st June 2016, Big Ltd acquired the following assets and liabilities of Small Ltd: Carrying Amount Fair Value Land $310000 $340000 Plant( cost

4.. On 1st June 2016, Big Ltd acquired the following assets and liabilities of Small Ltd:

Carrying Amount Fair Value

Land $310000 $340000

Plant( cost $400000) 280000 295000

Inventory 80000 85000

Cash 15000 15000

Account payable (20000) (20000)

Loans (80000) (80000)

In exchange for these assets and liabilities, Big Ltd issued 100000 shares that has been issued for $1.20 per shares but at 1 June 2016 had a fair value of $6.10 per share.

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