The financial statements of A Ltd and B Ltd at 1 July 2020 were as follows:

	A Ltd	B Ltd
Cash	$ 25 000	-
Plant	60 000	59 000
Accumulated Depreciation	(15 000)	(12 000)
Inventories	12 600	24 000
Account Receivable	20 000	36 000
Goodwill	-	10 000
Total Assets	102 600	117 000
Accounts Payable	1 800	17 000
Net Assets	100 800	100 000
Share Capital
Retained Earnings	90 000	81 000
General Reserve	8 800	4 000
Total Equity	2 000	15 000
	100 800	100 000

At this date all the identifiable assets and liabilities of B Ltd were recorded at fair value except for the following assets:

	Fair Value
Plant	$47 000
Inventories	22 000

A Ltd agreed to pay B Ltd $6 000 in cash plus 16 000 fully paid shares in A Ltd, these shares having a fair value of $7.5 per share.

The business combination was completed and B Ltd went into liquidation.

Costs of liquidation amounted to $1 200.

• A Ltd incurred accounting and legal costs amounting to $450 in relation to the business combination.
• Costs of issuing the A Ltd. shares were $350.
• On 30 June 2020, B Ltd had reported a contingent liability relating to a guarantee given by that company to another entity. B Ltd did not record the guarantee as a liability because of the difficulty of measuring the liability. The fair value of this contingent liability was assessed as $15 000.

Required:

a) Prepare the acquisition analysis for this business combination.

b) Prepare the journal entries in A Ltd to record the business combination.