6 7 8 On January 1, 2020, AMI Corporation purchased the non-cash net assets of Culver Ltd. for $8,087,900. Following is the statement of financial position of Culver Ltd. from the company's year-end the previous day: Culver Ltd. Statement of Financial Position As at December 31, 2019 9 10 Cash $630,000 11 Accounts receivable 554,000 2 Inventory 2,510,000 3 Property, Plant and equipment (net) 2,070,000 4 Land 2,570,000 5 Total assets $8,334,000 Liabilities and Shareholders' Equity Accounts payable $324,000 Common shares 2,520,000 Retained earnings 5,490,000 Total liabilities and shareholders' equity $8,334,000 21 22 As part of the negotiations, AMI and Culver agreed on the following fair values for the items on Culver's statement of financial position: 23 24 25 26 27 28 29 Accounts receivable Inventory Property, Plant and equipment Land Accounts payable 30 Instructions $552,400 2,265,000 1,870,000 3,620,000 313,500 31 Prepare the journal entry on the books of AMI Corporation to record the purchase of the net assets of Culver Ltd, assuming AMI paid cash for the net assets (show all workings) 10 marks Debit Date Accounts and Explanations Credit 32 33 34 35 36