Question $4$

Question $1$ Accounting for Business Combinations

$16$ Marks

Big Ltd acquired Small Ltd taking over all the assets and liabilities as at $1$ June $2021.$ The price agreed on was $$60000,$ payable $$20000$ in cash and the balance by the issue of $16000$ fully paid shares in Big Ltd$,$ these shares having a fair value of $$2\mathrm{.}50$ per share.

Small Ltd had the following balances on $1$ June $2021.$

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