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Question 2: Business combination (5 Marks] On 1st December 2020, Grapefruit Ltd acquired the following assets and liabilities of Lime Ltd. Carrying Amount Fair Value Cash 20,000 20,000 Receivables 40,000 38,000 Inventory 27,000 42,000 Property, Plant and Equipment 135,000 157,000 Accounts Payable (37,000) (39,000) Loan (41,000) (46,000) In exchange for these assets and liabilities, Grapefruit Ltd issued 100,000 shares that have been issued for $1.20 per shares but at 1st December 2020, had a fair value of $6.50 per share. Required: 1. Prepare the acquisition analysis using IFRS 3 Prepare the journal entries in the records of the Grapefruit Ltd account to acquire the II. assets and liabilities of Lime Ltd. III. Prepare the acquisition analysis assuming that the fair value of the shares was $8.30 per share