Accounting at acquisition date by the acquirer On 1 July 2019, Brad Ltd acquired all of the assets and liabilities of Pitt Ltd. In exchange for these assets and liabilities, Brad Ltd issued 100 000 shares that at date of issue had a fair value of $5.20 per share. Costs of issuing these shares amounted to $1000. Legal costs associated with the acquisition of Pitt Ltd amounted to $1200. The asset and liabilities of Pitt Ltd at 1 July 2019 were as follows:

Fair value Assets. Carrying amount.
Cash $2,000 $2,000 Acc receivable 10,000 10,000 inventories 64,000 68,000. euipment 3,20,000. 2,32,000 accumulated dep- equipment (96,000) - patents 2,40,000 2,80,000 Liabilities Acc payable (16,000) (16,000) Debentures (64,000) (64,000)

Required

1. Prepare the acquisition analysis at 1 July 2019 for the acquisition of Pitt Ltd by Brad Ltd.
2. Prepare the journal entries in the records of Brad Ltd at 1 July 2019.
3. Prepare the journal entries in the records of Brad Ltd assuming that the shares issued by Brad Ltd had a fair value of $4.80.