Question 12.7 LOSZUO Accounting for an acquirer, liquidation of acquiree The financial statements of Clint Ltd and Eastwood Ltd at 1 July 2016 were as follows: Clint Lid $ 60000 (15000) Plant Accumulated depreciation Inventory Accounts receivable Eastwood Ltd $ 58000 (13000) 23000 35000 12600 20000 25000 Cash Goodwill Total assets Accounts payable Net assets Share capital Retained earnings General reserve Total equity 102 600 1800 100800 90000 8800 2000 100800 9000 112000 18000 94000 81000 3000 10000 94000 Al this date all the identifiable assets and liabilities of Eastwood Lid were recorded at fair valu except for the following assets: IOW 100800 94000 Molasses Share capital Retained earnings General reserve Total equity 90000 8800 2000 100 800 81000 3000 10000 94000 At this date all the identifiable assets and liabilities of Eastwood Lid were recorded at fair value except for the following assets: Plant Fair value $48000 25000 Inventory Clint Ltd agreed to pay Eastwood Ltd S5000 in cash plus 15 000 fully paid shares in Clint Lid. these shares having a fair value of $6 per share. The business combination was completed and Eastwood Lid went into liquidation. Cinds of liquidation amounted to $1000. Clint Ltd incurred accounting and legal costs amounting to $400 in relation to the business combination. Costs of issuing the Clint Ltd shares were $300. hel A. Prepare the journal entries in Clint Led to record the business combination. B. Prepare the statement of financial position of Clint Ltd immediately after the business combination C. Prepare the Liquidation Account and the Shareholders Distribution Account in Eastuul Lid. analinn 128 Accounting for are