Q71 6 Points Cyrus Lut purchased all the stars and abilities of Pollock Lis on July 2010 for the purchase 2 shares in Cyrus Lad for every 3 shares in Pollock Ltd. The market value or Cyrus Liars shares were $2.00 at meisterdate. Cyrus podshere be expenses of $500 Each shoveholder of Potock was oito to receive 50,40 cath Co Ltd wieso sey the guidation expenses of Pollock Lad of 55.000 The Baance sheet of Pollock tha on tuy 201793 as fotows XXO 120.000 Buildings Machinery Inventory Financial acts Goodwill Linhilities 320,000 Accounts payable 120,000 Loans payable 90,000 Equity 40AKO Share capital of Slcach 10,000 Retained profits 610,000 300.000 120.000 630,000 The Directors of us und believe me when grouped together these assets arabes The Directors of Custod believed that when grouped together these and white wete a separate business unit. The net sets of Potock are recorded at a value except for the following Buldne $520.000 Machinery $70.000 There was no contro ability which were to have a fer value of $20,000 Recollect Picowe ALL Journal entre induding cashypertoning to the bowe traction in the books of Cyrus Lid on 1 X 2019. forore any taximet pet set 072 4 Ports Ceteartie public research vittion which was established to retowich, produce and commerce and sell health products. The Institution generates revenue as follows 20% grot from the State Government -5% grant from the Governa .60% from comercial activities 15 from industy funding and course Too Q7.2 4 Point Careheart is a public research intensive institution which was established to research produce and commercialize and sell health products. The institution generates revenue as follows: 20% grant from the State Government . 5 grant from the Asian Government .60% from commercial activities 15 from industry funding and courte fees The State Government requires a significant commercial activities and finance and property decisions of the ration to be spotoved by the Minister Required Dacus who con Coreeart Q7.1 6 Points Cyrus Ltd purchased all the assets and liabilities of Pollock Ltd on 1 July 2019 for the purchase consideration of: 2 shares in Cyrus Ltd for every 3 shares in Pollock Ltd. The market value of Cyrus Ltd's shares were $2.00 at the transfer date. Cyrus paid share issue expenses of $500. Each shareholder of Pollock was also to receive $0.40 cash. Cyrus Ltd will also pay the liquidation expenses of Pollock Ltd of $5,000. The Balance sheet of Pollock Ltd on 1 July 2019 is as follows: Assets Buildings Machinery Inventory Financial assets Goodwill 90,000 120,000 $ Liabilities 370,000 Accounts payable 120.000 Loans payable 90,000 Equity 40,000 Share capital of S1 each 10,000 Retained profits 630,000 300,000 120,000 630,000 The Directors of Cyrus Ltd believed that when grouped together, these assets and liabilities The Directors of Cyrus Ltd believed that when grouped together, these assets and liabilities were a separate business unit. The net assets of Pollock Ltd are recorded at fair value except for the following: Building: $520,000 Machinery: $70,000 There was also a contingent liability which was assessed to have a fair value of $20,000. Required: Prepare ALL journal entries (including cash) pertaining to the above transaction in the books of Cyrus Ltd on 1 July 2019. Ignore any tax impact. Please select file(s) Select file(s) Q7.2 4 Points CareHeart is a public research-intensive institution which was established to research, produce and commercialize and sell health products. The Institution generates revenue as follows: 20% grant from the State Government -5% grant from the Australian Government .60% from commercial activities 15% from industry funding and course fees The State Government requires all significant commercial activities and finance and property decisions of the Institution to be approved by the Minister. Required: Discuss who controls Care Heart