PLZ PLZ HELP

The financial statements of PCN Ltd at 1 August 2019 contained the following information:

PCN Ltd is involved in the manufacture of leather bags. The current manager wants to retire and offers to sell the business to his main rival, ALB Ltd.

They come to an agreement by which ALB Ltd will take over PCN Ltd. ALB Ltd will acquire all the assets of PCN Ltd except for the cash and the motor vehicles. In exchange, ALB Ltd will give the shareholders of PCN Ltd a block of land valued at $96,000 and a motor vehicle valued at $20,400. These assets are currently held by ALB Ltd. The land is carried at cost of $40,000 while the motor vehicle is carried at $20,000, being cost of $21,000 and accumulated depreciation of $1,000. ALB Ltd will also provide sufficient additional cash to enable PCN Ltd to pay off the accounts payable and the liquidation expenses of $1,200. On liquidation of PCN Ltd, the land and the motor vehicles will be distributed to the sons of its manager.

ALB Ltd incurred legal and valuation costs of $2,000 in undertaking the business combination.

The assets and liabilities of PCN Ltd are recorded at amounts equal to fair value except for the following:

ALB Ltd also recognised the brand PCN that was not recognised in the records of PCN Ltd as it was an internally developed brand. It was calculated that this brand had a fair value of $26,000.

Required

(a) Find the amount of goodwill or gain on bargain purchase through acquisition analysis.

(b) Prepare the journal entries in ALB Ltd to record the acquisition of the assets and liabilities of PCN Ltd.