Question 1:

Hannahs Grocery Emporium (HGE) merged with Aidans Caf and Bakery (ACB) on June 15, 2009. HGE has been identified as the acquiring firm, and the acquisition date has been determined to be June 15, 2009. ACB is now fully owned by HGE. HGE issued 10,000 common shares ($1 par). The shares were trading at $20 per share on June 15. Both companies are publicly traded. Below is the list of assets and liabilities of ACB as of June 15. ACBs balance in retained earnings on June 15, 2009, was $30,000.

(Amounts in dollars)	Book value	Fair value defined in accordance with US GAAP	Fair value defined in accordance with IFRS
Cash	50,000	50,000	50,000
Accounts receivable	20,000	20,000	20,000
Inventory	34,000	45,000	43,000
Property, plant and equipment	125,000	176,000	199,000
Intangible assets (no goodwill)	25,000	30,000	28,000
Accounts payable	27,000	27,000	27,000
Warranty liability	7,000	5,000	2,000
Notes payable (private debt payable to a bank)	112,000	112,000	112,000

Provide any necessary journal entries under both US GAAP and IFRS to comply with push-down accounting requirements.

question 2:

Super Sweet Sodas, Inc. (SSSI) acquired a 70% interest in Kavity Killer Toothpaste Inc. (KKTI) on January 1, 2009. SSSI paid $1,400 in cash for its interest in KKTI. The fair value of KKTIs assets is $1,200, and the fair value of their liabilities is $400.

Provide the journal entry for the acquisition using US GAAP.

Provide the journal entry for the acquisition using IFRS, assuming that SSSI does not wish to report the noncontrolling interest at fair value.