Relating to Question 1:- Acquisition of net assets On 1 December 2021, Braddock Ltd purchased a 100% interest in Cele Ltd. The cost of acquisition is $2.5 million plus associated due diligence cost of $65 000. Braddock Ltd has yet recorded the necessary journal entries relating to this acquisition. At the date of acquisition, the statement of financial position of Cele Ltd shows: $ $ $ Assets Current Assets Cash Accounts receivables 400 000 1 100 000 Allowance for impairment of receivables (210 000) 890 000 Inventories Other receivables 930 000 680 000 Total current assets 2 900 000 Non-Current Assets Leasehold land, at cost 230 000 Accumulated amortisation - leasehold land (25 000) 205 000 Warehouse, at revaluation 180 000 Accumulated depreciation - warehouse (56 000) 124 000 Plant and machinery, at cost 820 000 Accumulated depreciation - plant and machinery (350 000) 470 000 Total non-current assets 799 000 Total assets 3 699 000 Liabilities Current Liabilities Trade and other payables Bank overdrafts Current tax liability Total current liabilities Current Liabilities Loan payables Total liabilities Net assets 3 650 000 98 000 53 000 801 000 800 000 1 601 000 2 098 000