Question 2 (25 marks) Cars Ltd acquired 60% of Trucks Ltd for a cost of $600,000, when the equity of Trucks Ltd consisted of: Share Capital General Reserve $200,000 $80,000 MACOO6 Trimester 2 2021 FEX Page 2 of 6 Retained Earnings $20,000 All the identifiable assets and liabilities of Cars Ltd were recorded at fair value except for the following: Carrying Fair Amount Value Vehicles (cost $550.000) $450,000 S490.000 Equipment $80.000 590.000 I Required: Prepare the journal entries for the pre-acquisition stage (ie.. Stage 1) of recording the pre- acquisition elimination and Non-Controlling Interest both using the partial goodwill method. Ar and Wine 61