On 1 July 2019 parent ltd acquired all the issued share capital of subsidiary ltd giving in exchange 100000 shares in parent ltd, these having a fair value of $5 per share. at the acquisition date, the statement of financial position of parent ltd and sub ltd, and the fair values of sub Ltd's assets and liabilities, were as follow:

	parent ltd	sub ltd
	carrying amount	Carrying amount	fait value
equity and liabilities
share capital	$550000	$300000
retained earnings	350000	140000
total equity	900000	440000
Liabilities
provision	30000	60000	60000
payable	27000	34000	34000
tax liabilities	10000	6000	6000
Total liabilities	67000	100000
total equity and liabilities	967000	540000
Assets
land	120000	150000	170000
equipments	620000	480000	330000
accumulated deprectation	(380000)	(170000)
share in sub ltd	500000
inventory	92000	75000	80000
cash	15000	5000	5000
Total assets	967000	540000

At the acquisition date, Sub Ltd. has an unrecorded patent with a fair value of $20 000 and a contingent liability with a fair value of $15000. This contingent liability relates to a loan guarantee made by Sub Ltd which did not recognise a liability in its records because it did not consider it could reliably measure the liability. The tax rate is 30%.

Q a) Prepare an acquisition analysis.

Q b) Record the business combination valuation journal entries.