On 1 July 2016, Bread Ltd acquired all of the assets and liabilities of Pot Ltd. In exchange for these assets and liabilities, Bread Ltd issued 100000 shares that at date of issue had a fair value of $5.40 per share. Cost of issuing these shares amounted $1000. Legal costs associated with the acquisition of Pot Ltd amounted to $1200. The asset and liabilities of Pot Ltd at 1 July 2016 were as follows: Carrying amount Fair value Assets Cash Accounts receivable Inventory Equipment $2000 10 000 64000 $2000 10 000 68 000 320 000 212 000 Accumulated depreciation equipment (96 000) Patents Accounts payable Debentures 240 000 200 000 (16000) (14 0001 163 000 (2000) Required: Prepare the acquisition analysis at 1 July 2016 for the acquisition of Pot Ltd by Bread Ltd. Prepare the journal entries in the records of Bread Ltd at 1 July 2016. Prepare the journal entries in the records of Bread Ltd assuming that the shares issued by Bread Ltd had a fair value of $4.80. Assets Cash Carrying amount Fair value $2.000 $2.000 Accounts receivable Inventory 10 000 10 000 64 000 68 000 Equipment 320 000 232 000 Accumulated depreciation equipment (96 000) - Patents 240 000 280 000 Liabilities Accounts payable Debentures (16 000) (16 000) (63 000) (62 000)