On 1 January 2016, Desert Ltd acquired all the issued shares of Island Ltd. At this date the equity of Island Ltd consisted of: $500,000 200,000 Share capital 100,000 shares issued at $5 per share General reserve Asset revaluation surplus Retained earnings 100,000 50,000 In exchange for these shares, Desert Ltd agreed to pay the former shareholders of Island Ltd two shares in Desert Ltd, these having a fair value of $4 per share, plus $1.50 cash for each share held in Island Ltd. The costs of issuing the shares were $800. Required Prepare the journal entries in the records of Desert Ltd to record these events