Q7 Business Combination 9 Points Q7.1 6 Points Kevin Ltd acquired all the assets and liabilities of Madison Ltd on 1 July 2022 for the purchase consideration of $620,000, payable $300,000 in cash and $320,000 in the form of Kevin's shares. Other costs that Kevin incurred include: $1000 to issue 80,000 shares at a price of $4 per share: $1200 for an independent valuer to assess the fair value of Madison's net assets; $1500 legal fees in relation to the acquisition + The Balance sheet of Madison Ltd on 1 July 2022 is as follows: Assets Accounts Receivable Prepaid Asset Goodwill Land Liabilities Warranty Provision Discounted Bank Bill 20,000 15,000 100,000 500,000 30,250 50,000 554,750 Net Assets Equity General Reserve Share Capital Retained Earnings Total Equity 25,000 355,000 174,750 554,750 All the identifiable net assets in the book of Madison Ltd are recorded at fair value, except for land. Madison current adopts cost model for the measurement of land, but it would have recorded a revalued amount of $650,000 on 1 July 2022 if revaluation model is adopted. Required: Prepare all journal entries in the book of Kevin on 1 July 2022. Ignore any tax implications. Please select filesi Select files Q7.2 3 Points In accordance with AASB 3 Business Combinations, (a) explain why it is necessary to identify an acquirer in a business combination; (b) identify two factors that an entity should consider in assessing which entity is an acquirer. Enter your answer here