Scruffy Led is a manufacturer of pet food and looking to take over the company Smuckos Led . Financial information of Smuck os Led at 1 December 2019 included the following : Assets $13 , 800 Cash 46 , 800 Trade receivables 23, 200 Inventory* 13.3, 800 Plant ( 32, 000 )| Accumulated depreciation - plant 20 , 800 Land 206 , 400| Total assets Liabilities 24 , 800 Trade payables 24 , 000 Provisions 17 , 200 Loans 66 , 00 0 Total liabilities Equity 48, 000 Share capital - 60,000 ordinary shares 32 , 000 - 40 ,000 ordinary shares* 60 , 400 Retained earnings 140 , 400 Total equ All the assets and liabilities of Smuckos Led were recorded at amounts equal to fair value except as follows :" $1.12 , 000 plant 35, 800 Land 28.000 Inventory Smuckos Led also had a brand 'Scuby Snacks ' that was not recorded by the company because it had been internally generated . It was valued at $10 ,000 . Smuckos Led has also not recorded the interest accrued on the loans amounting to $2 2 , 800 and annual leave entitlements of $13 , 000 .' Scruffy Led decided to acquire all the assets of Smuckos Led except for the cash . In exchange for these assets , Scruffy Led agreed to provide :" a) Two shares in Scruffy Led for every three A ordinary shares held in Smuckos Led . The fair value of each Scruffy Led share was agreed to be $2 .16 . b ) Artworks to the owners of the B ordinary shares held in Smuckos Led . ( These artworks were held in the records of Scruffy Led at 540 ,000 and valued at $58 , 000 . C ) Sufficient additional cash to enable Smuck os Led to pay off its liabilities including the expected liquidation costs of $4 , 000 ." Required :" 1 . Prepare the acquisition analysis in relation to the acquisition to determine the gain on bargain purchase or goodwill . ( 6 marks )* 2. Prepare the journal entries in the records of Scruffy Led to record its acquisition of Smuckos Led on 1 December 2019 . ( 6 marks )