Question 5 0n 1 July 2009, Bugis Ltd entered into an agreement to take over the business of Junction Ltd. On this date the business combination took place with Junction Ltd's Balance Sheet as follows: Carrying Amount $ Cash 50,000 Accounts Receivable 125,000 Inventory 85,000 Plant & Equipment (net) m 1.391.392 Accounts Payable 92,000 Mortgage loan 500,000 Share capital 553,000 Retained earnings 112.9991 MM Additional information: Fair Value $ 60,000 350.000 1. Bugis Ltd is to acquire all the assets and liabilities of Junction Ltd except for cash and accounts payable. 2. In exchange for the acquired business. Bugis Ltd will give the seller 100.000 Bugis Ltd shares. The fair value of each Bugis Ltd share is $4. Costs to issue these shares will amount to $10,000. 3. Bugis Ltd will also provide enough cash for Junction Ltd to pay off its accounts payable and liquidation charges of $12,000. 4. In addition, Bugis Ltd will offer the seller a piece of land with a fair value of $200,000. The carrying cost of the land was $120,000. Required: a) Prepare an acquisition analysis in relation to this acquisition. (5 marks) b) Prepare the journal entries in the books of Bugis Ltd to record the acquisition of Junction Ltd on 1 July 2009