Question 2 Business combination valuation entries, pre-acquisition entries On 1 july 2022, Champion Ltd acquired all the issued shares of Wimmera Ltd for $174800. At this date the equity of Wimmera Ltd consisted of share capital of $80000 and retained eamings of $68800. All the identifiable assets and Wahilities of Wimmera ltd were recorded at amounts equal to fair value except for: The patent was considered to have an indefinite life. It was calculated that the plant had a further life of 10 years, and was depreciated on a straight-line basis. All the inventories were sold by 30 June 2023 . In June 2023, Wimmera Ltd conducted an impairment test on the patent, as it was considered to have an indefinite life, and the goodwill. As a result, the goodwill was considered to be impaired by $1200. In May 2023. Wimmera transferred $20000 from the retained earnings on hand at 1 July 2022 to a general reserve. The tax rate is 30%. Required 1. Prepare an acquisition analysis for Champion's purchase of the assets and liabilities of Wimmera Ltd - date 1.7.22 Prepare the journal entries to record the acquisition in the books of Champion Ltd 1.7.22