On 30 June 2019, Letsgetthem Ltd. acquired all the assets and liabilities of Comeonover Ltd. Details of the consideration transferred by Letsgetthem Ltd. are as follows:

Cash of $616,000 and 30,000 shares in Letsgetthem Ltd. were issued. The share price on 30 June 2019 was $6.50 per share.

Cost of issuing the shares was 55,500.

Legal fees and associated costs with the acquisition totalled $5,500.

At the date of acquisition, the carrying values of all assets and liabilities presented on the statement of financial position of Comeonover Ltd were as follows:

Assets Carrying amount

cash $415,000

Plant,property and Equip(PPE) $305,000

Debtors $71,000

Patents $37,000

Liabilities

Debentures $56,000

The fair value of all assets and liabilities presented above are the same as their carrying values. The exceptions are the PPE which had a fair value $40,000 greater than the carrying value, the Debtors which had a fair value $3,000 greater than the carrying value, and Patents which had a fair value $25,000 lower than the carrying value.

In addition, Comeonover Ltd. is currently being sued by a previous customer. The fair value of the expected damage is $27,000

Requierd

a)List and briefly discuss any two of the requirements to measure all assets acquired and liabilities assumed at the fair value by Letsgetthem Ltd.

b)Analyze and provide the necessary details for the information given and determine the goodwill or bargain from the purchase transaction (show all workings).

c) Prepare the necessary journal entries for the business combination on the acquisition date, using the direct method. (Narrations are required)