Question 1 ( 7 marks) ABC Ltd acquired a Machine from BAN Ltd for the following consideration: Cash $70 000, Land in the books of ABC Ltd the land is recorded at its cost of $700 000. It has a fair value of $750 000.

ABC Ltd also agrees to assume the liability of BAN Ltd bank loan of $95 000 as part of the Machine acquisition.

REQUIRED (a) Calculate the acquisition cost of the Machine (b) Provide the journal entries that would appear in ABC Ltds books to account for the acquisition of the Machine