The directors of Solar Panels Southern Hemisphere Pty Ltd (SPSH), a manufacturer of solar products agreed to sell the business to a competitor, Climate Change Solutions International Ltd (CCSI). The financial statements of Solar Panels Southern Hemisphere Pty Ltd at 1 July 2020 contained the following information:

Assets
Current assets
Cash	18,750
Accounts receivable	38,000
Inventories	250,000
Total current assets	306,750
Non-current assets
Vehicles	112,000
Accumulated depreciation	18,000
Machinery	1,500,000
Accumulated depreciation	850,000
Buildings	2,100,000
Accumulated depreciation	210,000
Land	750,000
Product Development costs	256,000
Total non-current assets	3,640,000
Total assets	3,946,750
Liabilities
Accounts payable	178,000
Other payables	55,000
Provisions	250,000
Loans	2,200,000
Total liabilities	2,683,000
Equity
Share capital - 50,000 shares	102,000
Retained earnings	1,161,750
Total equity	1,263,750

An agreement was made whereby CCSI takes over SPSH to acquire all the assets and liabilities of SPSH, except for the cash, motor vehicles and accounts payable. In exchange, CCSI will give the shareholders of SPSH a block of land valued at $400,000, a motor vehicle valued at $45,400 and current shareholders will receive shares in CCSI worth $50 per share. The land is carried at a cost of $250,000 while the motor vehicle is carried at $39,000, comprising the cost of $54,000 and accumulated depreciation of $15,000. CCSI will also provide sufficient additional cash to enable SPSH to pay off the accounts payable and the liquidation expenses of $10,000.

CCSI recognised the brand Solar Panels Southern Hemisphere that was not recognised in the records of SPSH as it was an internally developed brand. It was calculated that this brand had a fair value of $500,000. CCSI also incurred legal and valuation costs of $7,500 in undertaking the business combination.

The assets and liabilities of SPSH are recorded at amounts equal to fair value except for the following:

	Fair Value
Land	1,200,000
Buildings	2,500,000
Machinery	900,000
Inventories	290,000

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 CCSI to record its acquisition of SPSH on 30 June 2021. (9 marks)