Corporate Accounting

hicles 800 000 610 00 cumulated depreciation - vehicles (200 000) tal assets $5 000 000 uity are capital - 100 000 shares 2 500 000 tained earnings 2 000 000 tal equity 4 500 000 bilities counts payable 100 000 100 00 ans 400 000 400 00 tal liabilities 500 000 tal equity and liabilities $5 000 000 r Ltd acquired all the assets and assumed all the liabilities of Aquaman. on 1 July 2020. In exchange, Thor Ltd agreed to: issue 5 Thor Ltd shares for every Aquaman Lid share held. Thor Ltd shares were assessed to have a fair value of $7 per share. Costs of share issue were $1 000. transfer a patent to the former shareholders of Aquaman Ltd; the patent had been internally generated by Aquaman Ltd and was carried at $1 000 000. It was considered to have a fair value of $1 600 000. pay cash of $3.00 per share to the former shareholders of Aquaman Lid for each share held in Aquaman Lid. 0 June 2020, Aquaman Lid reported a contingent liability relating to a antee given to another entity. Aquaman Ltd did not record the antee as a liability because of the difficulty of measuring the liability. fair value of this contingent liability was assessed as $20 000. r Ltd incurred $9 000 in costs in relation to accounting and legal fees in tion to its acquisition of Aquaman Ltd