Question 1 Topic 1 Business Combinations (30 marks) Birchwood Limited operates a nursery chain across Australia. The company is taking steps to vertically integrate its supply chain, starting with organic garden compost. They have entered a contract to purchase all the assets, except cash, of Organic Compost and Garden Soils Pty Ltd (OCGS). They will only acquire the accounts payable liability as part of the purchase. However, they have agreed to provide enough funds to OCGS, to cover all other liabilities and accrued expenses. After the transfer of assets and funds, OCGS will liquidate. Birchwood Limited has also agreed to cover the liquidation costs as part of the contract. The acquisition date was 1 July 2023 and settlement occurred on that date. The Statement of Financial Position details at that date, together with additional information to complete the acquisition entries are available in your Interact Site under Assessment Resources/ Assessment 2. Birchwood Limited have determined the that assets of OCGS were recorded at fair values except for land, plant, and accounts receivable. The fair value of those assets is as follows: Land 720,000 Building 140,000 Plant 85,000Trucks and other vehicles 43.01:") Accounts receivable ETA!!!) Required 1. Critically assess if Birchwood Ltd.'s purchase of assets in Organic Compost and Garden Soils Pty Ltd is treated as a business combination. [5 marks] 2. Determine if the business combination results in goodwill or gain on bargain purchase. [12 marks] 3. Prepare the journal entries to record the business combination in the records of Birchwood Limited on 1 January EB. [10 marks} 4. Prepare the disclosure note for the acquisition. {3 marks]