Part B (5 marks) This question is not related to Part A Red Ltd acquired 80% per cent of the ordinary shares of Camp Ltd on 30 June 2017 The cost of acquisition was $1 cash plus one share in Red for every one share acquired in Camp. Shares of Red and Camp were trading at $2.86 and $2.50 respectively on 30 June 2017. The cost of issuing shares in Red Ltd was $5,000 and the company incurred $6,000 legal costs in relation to the acquisition. Red Ltd Balance sheet as at 30 June 2017 Assets Bank Other assets 125 000 300 000 425 000 Net assets Equity Share capital 250 000 175 000 425 000 250 000 ordinary shares, fully paid Retained profits Total Equity Camp Ltd Balance sheet as at 30 June 2017 Assets Bank Other assets 10 000 150 000 160 000 Total assets Liabilities Net assets Equity 50 000 110 000 Creditors Share capital 50 000 60 000 110 000 50 000 ordinary shares, fully paid Retained profits Total Equity Required: Prepare journal entries to record the acquisition of Camp Ltd by Red Ltd