Q2 On 1 July 2014 Grey Ltd acquired all the issued shares of Fantail Ltd for $218,500 . The equity of Fantail were: Share capital (100,000 shares) 100,000 General Reserve 50,000 Retained Earnings 36,000 The assets acquired were at fair value except for : Carrying amount Fair value Inventory 27,000 35,000 Land 75,000 90,000 Equipment (cost $100,000) 50,000 60,000 Required : Prepare the necessary journal entries to record the acquisition and fair value adjustments .