On 1st June 2016, Big Ltd acquired the following assets and liabilities of Small Ltd:

Carrying Amount Fair Value

Land $310000 $340000

Plant( cost $400000) 280000 295000

Inventory 80000 85000

Cash 15000 15000

Account payable (20000) (20000)

Loans (80000) (80000)

In exchange for these assets and liabilities, Big Ltd issued 100000 shares that has been issued for $1.20 per shares but at 1 June 2016 had a fair value of $6.10 per share.

Required:

i) Prepare the acquisition analysis

ii) Prepare the journal entries in the records of Big Ltd to account for the acquisition of the assets and liabilities of Small Ltd.

iii) Prepare the journal entries assuming that the fair value of the shares was $7.50 per share