On 1 July 2009, Mummy Ltd enters into an agreement to take over the business of Daughter Ltd. On this date the business combination took place with Daughter Ltd's Balance Sheet as follows: Carrying Amount Fair Value $ $ Cash 20 000 Accounts Receivable 56 000 Inventory 29 000 50 000 Plant & Equipment (net) 127 000 140 000 232 000 Accounts Payable Mortgage loan Ordinary A shares $2, fully paid Ordinary B shares $1, fully paid Retained earnings 31 000 51 500 40 000 60 000 49 500 232 000 Additional information: 1. Mummy Ltd is to acquire all the assets (except cash) and liabilities of Daughter Ltd. 2. Daughter Ltd has been undertaking research into a new transport vehicle and has expensed a total of $15 000 in research and development costs. Mummy Ltd determines that the fair value of this in-process research and development is $4 000 at acquisition date. 3. In exchange for the acquired business, Mummy Ltd will give the Ordinary A shareholders $4 per share in cash, $2 payable at acquisition date, and $2 payable in one year's time (Present Value of $1 discounted at 10% is 0.9091). Also, Mummy Ltd will give the Ordinary B shareholders of Daughter Ltd two shares in Mummy Ltd for every five shares held in Daughter Ltd. The fair value of each Mummy Ltd share is $3. Costs to issue these shares will amount to $1 900. 4. Additionally, Mummy Ltd is to provide Daughter Ltd with one of its newest Motor Vehicles which had an original cost of $52 000, and an accumulated depreciation of $28 000. At 1 July 2009 the fair value of the motor vehicle is $30 000. 5. Costs to transport and install Daughter Ltd assets at Mummy Ltds premises will be $5 000. Required: a) Prepare an acquisition analysis in relation to this acquisition. (7 marks) b) Prepare the journal entries in the books of Mummy Ltd to record the acquisition of Daughter Ltd on 1 July 2009. (8 marks)