Penelope Ltd is seeking to expand its share of the market and has negotiated to take over the operations of Rudolph Ltd on 1 July 2021. The statement of financial position of Rudolph Ltd as at 30 June 2021 is as follows: $ Cash 12 000 Accounts Receivable 34 700 Inventory 27 600 Land 100 000 Building 120 000 Accumulated depreciation - Building (90 000) Plant & Equipment 82 000 Accumulated depreciation - P&E (36 000) Goodwill 2 000 Total Assets 252 300 Accounts payable 45 100 Mortgage loan 44 000 Debentures 52 500 Share Capital (40 000 ordinary shares) 60 000 Retained earnings 23 900 Reserves 26 800 Total Liabilities & Equity $252 300 Penelope Ltd is to acquire all the identifiable assets, except for cash and plant and equipment, of Rudolph Ltd. The assets of Rudolph Ltd are all recorded at fair value except for the following: Fair Value Inventory $ 39 000 Land 130 000 Buildings 40 000 In exchange, Penelope Ltd is to provide sufficient extra cash to allow Rudolph Ltd to repay all of its outstanding debts and its liquidation costs of $4400, plus three fully paid shares in Penelope Ltd for every five shares held in Rudolph Ltd. The fair value of a share in Penelope Ltd is $6. Costs of issuing the shares were $1200. Required Prepare the acquisition analysis and journal entries to record the business combination in the records of Penelope Ltd