On 1 July 2016, New Ltd acquired the following assets and liabilities from Day Ltd: Carrying amount Fair value Land $300,000 $350,000 Plant (cost $400 000) 280,000 290,000 Inventory 80,000 85,000 Cash 15,000 15,000 Accounts payable (20,000) (20,000) Loans (80,000) (80,000) In exchange for these assets and liabilities, New Ltd issued 100 000 shares that had been issued for $1.20 per share but at 1 July 2016 had a fair value of $6.50 per share. Required 1. Prepare the journal entries in the records of New Ltd to account for the acquisition of the assets and liabilities of Day Ltd. 2. Prepare the journal entries assuming that the fair value of New Ltd shares was $6 per share