On 1 June 2020, Tom Ltd acquired all the issued shares (cum div.) of Cruise Ltd for $263 000. At that date the equity of Cruise Ltd was recorded at:

Share Capital $100 000

Retained earnings $150 000

On 1 June 2020, the records of Cruise Ltd also showed that the company had recorded the asset goodwill at cost of $5000. Further Cruise Ltd had a dividend payable liability of $10 000, the dividend to be paid in September 2020. All other assets and liabilities were carried at amounts equal to their fair values.

Required

A) Prepare Acquisition Analysis at 1 June 2020

B) Prepare the pre-acquisition entries at 1 June 2020