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Pop Ltd and Bubble Ltd are small family-owned companies engaged in sustainably farmed vegetables. The owners of Pop Ltd are doing very well, while the

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Pop Ltd and Bubble Ltd are small family-owned companies engaged in sustainably farmed vegetables. The owners of Pop Ltd are doing very well, while the owners of Bubble Ltd want to retire. On 1 July 2024, Pop Ltd took over the operations of Bubble Ltd, which then liquidated. The statement of financial position of Bubble Ltd as at 30 June 2024 was as follows: $ Cash 2 000 Accounts Receivable 15 000 Land 90 000 Building 125 000 Accumulated depreciation - Building (95 000) Equipment 114 000 Accumulated depreciation - Equipment (36 000) Vehicles 100 000 Accumulated depreciation - Vehicles (32 000) Total Assets $283 000 Accounts payable 23 500 Bank loan 107 500 Share Capital ($2 ordinary shares) 120 000 Retained earnings 32 000 Total Liabilities & Equity $283 000 Pop Ltd agreed to acquire all of the assets, except cash and vehicles, of Bubble Ltd and assume all of the liabilities except accounts payable. All the assets of Bubble Ltd are recorded at fair value, except for the following: Fair Value Land 110 000 Building 80 000 Vehicles 34 000 In return, Pop Ltd is to give the owners of Bubble Ltd a block of vacant land, two vehicles and sufficient additional cash to enable Bubble Ltd to pay off the accounts payable and the liquidation costs of $2500. On 1 July 2024, the land had a fair value of $120 000 (carrying amount of $50 000) and the vehicles had a fair value of $28 000 (cost of $50 000 and accumulated depreciation of $20 000). Required Prepare the acquisition analysis and the journal entries to record the acquisition of Bubble Ltd in the records of Pop Ltd

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