Orange Ltd acquired an existing business, Lemon Ltd on 1 July 2021. The statements of financial position of the two companies immediately prior to the acquisition were as follows:

		Orange Ltd	Lemon Ltd
Cash		5,200	3,000
Accounts receivable		31,000	15,500
Land		268,000	90,000
Building (net)		40,000	35,000
Equipment (net)		72,000	49,000
Plant (net)		22,000	25,000
Motor vehicles		35,000	39,000
Delivery vehicles		42,000	36,500
Total assets		515,200	293,000
Accounts payable		31,000	35,500
Loan - Bank of QLD		156,000	80,000
Loan - Unsecured		37,000	35,000
Loan - Bank of TAS		72,000	55,000
Share capital	- 120,000 shares	120,000	-
	- 70,000 shares	-	70,000
Reserves		32,000	-
Retained earnings		67,200	17,500
Total liabilities and equity		515,200	293,000

All of the assets and liabilities of Lemon Ltd are recorded at fair value, with the exception of:

	Fair value
Land	210,000
Buildings	65,000
Equipment	40,000
Motor vehicles	34,000

The specific terms of the acquisition are as follows:

1. Orange Ltd is to acquire all of the assets, except cash, delivery vehicles and motor vehicles of Lemon Ltd and will assume all of the liabilities except accounts payable.
2. Orange Ltd incurred acquisition costs of $400 in relation to the acquisition.

3. Orange Ltd is to give the shareholders of Lemon Ltd a portion of land, two delivery vehicles, sufficient additional cash to enable the company to pay the accounts payable and liquidation costs of $1,600. The land and two delivery vehicles had the following values at 1 July 2021:

	Carrying amount	Fair Value
Land	$50,000	$150,000
Two delivery vehicles	30,000	26,000

Required:

1. Prepare the acquisition analysis in relation to the acquisition to determine the gain on bargain purchase or goodwill. (4 marks)
2. Prepare the journal entries in the records of Orange Ltd to record its acquisition of Lemon Ltd at 1 July 2021. (6 marks)
3. Prepare the statement of financial position of Orange Ltd immediately subsequent to the acquisition. (5 marks)