Required: a) Prepare the acquisition analysis for this business combination. b) Prepare the journal entries in MoonLtd to record the businesscombination.

The financial information for Moon Ltd and its 100% owned subsidiary, Light Ltd, for the period ended 31 December 2023 is as follows: Moon Ltd acquired its shares in Light Ltd at 1 January 2023 for $45000 on a cum div. basis. At that date, Light Ltd recorded share capital of $30000. Light Ltd had declared prior to the acquisition a dividend of $5000 that was paid in April 2023. At 1 January 2023, all identifiable assets and liabilities of Light Ltd were recorded at fair value except for inventories, for which the carrying amount was $700 less than fair value. There was a fall in sales due to some negative google reviews and hence, 10% of inventories was still on hand at 31 December 2023. Inventories on hand in Light Ltd at 31 December 2023 also includes some items acquired from Moon Ltd during the period ended 31 December 2023. These were sold by Moon Ltd for $12000, at a profit before tax of $4000. Half of the goodwill on acquisition of Light Ltd by Moon Ltd was written off as the result of an impairment test on 31 December 2023