In a move to expand its share of the market in surgical equipment, Medical Ltd acquired the operations of Bio Ltd on 1 July 2022. On 1 July 2022, the Statement of Financial Position and fair values of net assets for Bio Ltd were as follows: $ Fair Values $ Cash 35,000 Accounts receivable (net) 58,000 55,000 Inventory 70,000 65,000 Land and buildings (net) 215,000 240,000 Plant and equipment (net) 192,000 180,000 Patent 40,000 60,000 Total assets $610,000 Accounts payable 75,000 75,000 Mortgage loan 100,000 100,000 Debentures 5% 20,000 20,000 Share capital ($2 ordinary shares fully paid) 360,000 Retained earnings 55,000 Total liabilities & equity $610,000 Fair values obtained for net assets were through active markets, except for the patent. Medical Ltd required an independent assessment to calculate the fair value for the patent. On the date of acquisition, Medical Ltd acquired all the assets (not including cash) and assumed the accounts payable of Bio Ltd. Bio Ltd went into liquidation after the acquisition.