Swan River Ltd purchased a parcel of assets and liabilities comprising a business directly from Lyneham Pty Ltd. The parcel, measured at net fair values, consisted of: Balance of Accounts:

Plant 50,000

Land 80,000

Vehicles 40,000

Accounts receivable 10,000

Accounts payable (16,000)

Total 164,000

Prepare journal entries to record the acquisition by Swan River Ltd, assuming that:

a) The cost of acquisition was $200,000 cash. (4 marks)

b) The cost of acquisition was $144,000 cash. (6 marks)