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A Co acquired a controlling interest in B Co and entered into the following transactions on acquisition date, 1 July 2 0 x 3 .

A Co acquired a controlling interest in B Co and entered into the following transactions on acquisition date, 1 July 20x3.
1. Cash payment to owners of B Co $4,000,000
2. Loan payable to banks to finance the acquisition of B Co $3,200,000
3. Fair value of shares issued to owners of B Co $5,000,000
4. Book value of shares issued to owners of B Co $4,000,000
5. Cost of issuing equity $40,000
6. Deferred consideration, payable at the end of 5 years $8,000,000
7. Present value of deferred consideration at an interest rate of 5% p.a $6,268,209
Required:
Prepare the journal entries that A Co would record to reflect the above transactions on 1 July 20x3. Unamortized discount or premium, where applicable, should be shown separately.

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