ANNEXURE 1: FORMATIVE ASSESSMENT 2 QUESTION 2 (21 marks) Sub Limited had the following assets and liabilities in its financial statements on 31 December 2020: Carrying Fair value amount 12 200 000 12 800 000 150 000 Property, plant, and equipment Trade receivables Long term loan Trade payables (5 700 000) (95 000) 130 000 (5 700 000) (95 000) Scenario 1 Eco Limited acquired all the assets and liabilities of Sub Limited on 1 January 2021 for R7 200 000. Scenario 2 Eco Limited acquired 80% of the issued share capital of Sub Limited. The purchase price of R7 200 000 was paid as follow: R5 000 000 cash and a machine with a cost of R2 500 000 and accumulated depreciation of R400 000 were transferred. 85 HFAC334-1-JUL-DEC2021-FA2-CP-V3-18052021 ANNEXURE 1: FORMATIVE ASSESSMENT 2 REQUIRED: 2.1) Based on the requirements of IFRS 3, discuss at what value the assets and liabilities of Sub Limited should be measured for purposes of the abovementioned transaction. (3 marks) 2.2) Calculate the value of the net assets of Sub Limited that Eco Limited acquired. (3 marks) 2.3) Prepare the journal entries required in the records of Eco Limited to account for Scenario 1. (8 marks) 2.4) Prepare the journal entries required in the records of Eco Limited to account for Scenario 2 (7 marks)