Q8 Business combination 8 Points Pitt Ltd recently received a takeover offer from Clooney Ltd. This offer was accepted by the shareholders of Pitt Ltd. on 31 March 2022. The purchase consideration agreed between the two parties consisted of the following: - 4 shares in Clooney Ltd for every 5 shares in Pitt Ltd. The market value of Clooney Ltd.'s shares was $1.30 at the transfer date. Share issue expenses paid was $3,000. - Clooney Ltd to take over all the assets (except cash) of Pitt Ltd. - Clooney Ltd to provide sufficient cash to Pitt Ltd to settle its liabilities. The Balance sheet of Clooney Ltd and Pitt Ltd on 31 March 2022 is as follows: All the net assets of Pitt Ltd are recorded at fair value except for the following: Pitt Ltd had also expensed a total of $20,000 in development costs. An independent valuer assessed that there was high certainty that the development would progress to a saleable product. The fair value of this development in process was assessed at $10,000. Clooney Ltd paid acquisition related costs pertaining to the business combination of $5,000. The business combination was completed and Pitt Ltd went into liquidation. REQUIRED: Prepare the journal entries in the books of Clooney Ltd on 31 March 2022 immediately after the acquisition of pitt Ltd. Ignore any tax impact. ( 8 marks)