On 2 January 2020, Amber Co. acquired a controlling interest in Blue Co. from the former owners of Blue Co.

The following transactions arose on the acquisition date.

Immediate cash payment to owners of Blue $405,000

Shares issued to owners of Blue: Fair value of shares issued $891,000

Book value of shares issued $162,000

Cost of issuing shares $7,500

Deferred cash payment to owners of Blue: Amount payable at the end of 2 years $823,000

Present value of the payment at an interest rate of 5% p.a. $746,485

Equipment transferred in settlement by Amber to owners of Blue:

Net book value of equipment $40,000

Fair value of equipment $52,000

Due diligence fees paid to consultants $27,000

Loan payable to banks to finance the acquisition of Blue $350,000

Contingent payment to Amber by the sellers: Amount payable at the end of 3 years $200,000

Present value of the payment at an interest rate of 5% p.a. $172,768

Condition: The sellers undertook to pay Amber the amount if the net profits of Blue falls below $1,000,000 for any year in the following 3 years. Probability: Net profits of Blue had exceeded $1,500,000 in each of the last five years; there are no indications that profits will decline in the future.

Prepare the journal entries in Amber's books to record the following transactions on 2 January 2020:

a. Remeasurement gain or loss on equipment transferred.

b. Loan proceeds from banks.

c. Consideration transferred (unamortized loan discount, where applicable, should be shown separately).

d. Acquisition-related costs.