On 1 July 2022, the Statement of Financial Position and fair values of net assets for Toddler Ltd were as follows: Cash Accounts receivable (net) Inventory Land Building (net) Patent Total assets Accounts payable Bank loan Debentures 10% Share capital ($5 ordinary shares fully paid) Retained earnings Total liabilities & equity $ 25,000 40,000 60,000 210,000 167,000 80,000 $582,000 55,000 150,000 20 000 295,000 62,000 $582,000 Fair Value 40,000 58,000 250,000 170,000 70,000 55,000 150,000 20,000 Fair values obtained for net assets were through active markets, except for the patent. Baby Ltd required an independent assessment to calculate the fair value for the patent. On the date of acquisition, Baby Ltd acquired all the assets (except for cash) of Toddler Ltd. Toddler Ltd went into liquidation after the acquisition. In exchange, Baby Ltd gave the shareholders of Toddler Ltd three Baby Ltd shares for every four Toddler Ltd shares they held. Baby Ltd shares were valued at $7 each on acquisition date. Costs incurred by Baby Ltd to issue the shares were $3,000. Additionally, Baby Ltd transferred to Toddler Ltd software with a fair value of $85,000 (recorded at $90,000 in Baby Ltd accounts). Baby Ltd also gave Toddler Ltd sufficient additional cash to enable Toddler Ltd to pay off all of its outstanding debt and liquidation costs of $4,000. Required: a) Prepare an acquisition analysis for the business combination. (12 marks). b) Prepare the necessary journal entries for Baby Ltd on acquisition date. (7 marks) c) Discuss the following measurements required for the patent acquired by Baby Ltd in the business combination: Initial measurement Subsequent measurements