Roger Ltd, a supplier of stationery items, agreed to acquire the business of a rival company, Dodger Ltd, taking over all assets and liabilities as at 1 July 2021. The consideration was payable by the issue of 2 shares in Roger Ltd for each share issued in Dodger Ltd. Roger shares had a fair value of $1.50 each and Dodger Ltd shares had a fair value of $2 each. In addition, Roger Ltd transferred the share portfolio to Dodger Ltd. The share portfolio had a fair value as at 1 July 2021 of $75 000. The trial balances of the two companies as at 1 July 2021 were as follows. Roger Ltd Dr Cr 100,000 Dodger Ltd Dr Cr 90,000 20,000 5,000 40,000 60,000 20,000 Share capital (Issued shares: Roger 100,000 shares; Dodger 20,000 shares) Retained earnings Accounts payable Mortgage loan Cash Equipment (cost) Accumulated Depreciation Inventory Share portfolio Goodwill 40,000 10,000 170,000 30,000 5.000 20,000 6,000 80,000 20.000 4,000 170,000 170,000 190,000 190,000 All the identifiable net assets of Dodger Ltd were recorded by Dodger Ltd at fair value except for the equipment, which had a fair value of $145 000 (assume no tax effect). The plant had an expected remaining life of 5 years. The business combination was completed and Dodger Ltd went into liquidation. Roger Ltd incurred incidental costs of $700 in relation to the acquisition. Costs of issuing shares in Roger Ltd were $800 with an additional $600 paid to a share brokerage firm. Required 1. Calculate the goodwill gain on bargain purchase, show your workings. (7 marks) 2. Prepare the journal entries in the records of Roger Ltd to account for the acquisition of the assets and liabilities of Dodger Ltd. (16 marks) Company Accounting Stierter Ser UNOR SOLUTIONS ARE NOT TO BE RELEASED TO STUDENTS Pane 414 3. Show in good format the statement of financial position of Roger Ltd after completion of the business combination. (12 marks)