All the assets of Box Ltd are recorded at fair value, with the exception of: Fair value Freehold land Cuitivation equipment Motor vehicle Required I. Prepare the acquisition analysis and the journal entrics to record the acquisition of Box Ltd's operations in the records of Police Ltd 2. Prepare the statement of financial position of Police Lid after the business combination 25.7 Accounting for business combination by acquirer LO6 River Ltd and Song Ltd are two family-owned flax-producing companies in Queensland. River Ltd is owned by the Jones family and the Smith family owns Song Ltd. The Jones family has only one son and he is engaged to be married to the daughter of the Smith family. Because the son is currently managing River Ltd, it is proposed that, after the wedding, he should manage both companies. As a result, it is agreed by the two families that River Ltd should take over the net assets of Song Ltd. The statement of financial position of Song Ltd immediately before the takeover is as follows. Carrying amount Fair value Cash Accounts receivable Land Buildings (net) Farm equipment (net) Irrigation equipment (net S 2000O 140000 620 DDD 530 00D 360 000 220000 160000 $20000 125000 840 0D0 550 000 364 000 225000 172 000 S2050 000 Accounts payable Loan Trevally Bank Share capital Retained earnings S 80000 480 000 670000 820000 80000 480000 $2050000 The takeover agreement specified the following details. River Ltd is to acquire all the assets of Song Ltd except for cash, and one of the vehicles (having a carrying amount of $45 000 and a fair value of $48 000), and assume all the liabilities except for the loan from the Trevally Bank. Song Ltd is then to go into liquidation. The vehicle is to be transferred to Mr and Mrs Smith. River Ltd is to supply sufficient cash to enable the debt to the Trevally Bank to be paid off and to cover the liquidation costs of $5500. It will also give $150000 to be distributed to Mr and Mrs Smith to help pay the costs of the wedding. . River Ltd is also to give a piece of its own prime land to Song Ltd to be distributed to Mr and Mrs Smith, this eventually being available to be given to any offspring of the forthcoming marriage. The piece of land in question has a carrying amount of $80000 and a fair value of $220000 . River Ltd is to issue 100000 shares, these having a fair value of $14 per share, to be distributecd via Song Ltd to the soon to-be-married-daughter of Mr and Mrs Smith, who is currently a shareholder in Song Ltd. 984 Financial reporting in Australia