a). How are assets that are acquired and liabilities that are assumed measured in a business combination? (1 mark) b). What is a 'gain on bargain purchase' and how is this accounted for in a business combination? (3 marks) c). On 1 October 2020, Broadbank Ltd acquired all the assets and liabilities of Churchill Ltd issuing 200 000 shares to acquire these net assets. The fair value of Churchill's assets and liabilities at this date were: Cash Furniture and fittings Accounts receivable Plant Accounts payable Current tax liability Provision for annual leave $600 000 320 000 80 000 800 000 160 000 88 000 32 000 The financial year for Broadbank Ltd is 1 October 2020 to 30 September 2021. Required: i). Prepare the journal entries for Broadbank Ltd to record the business combination at 1 October 2020, assuming the fair value of each Broadbank Ltd share at acquisition date is $8.20. (4 marks) ii). Prepare the journal entries for Broadbank Ltd to record the business combination at 1 October 2020, assuming the fair value of each Broadbank Ltd share at acquisition date is $7.40. (4 marks)