The financial statements of Bombora Ltd at 1 August 2021 contained the following information:

Assets

Vahicles 30000

Accumulated depreciation -4400

delivery truks 35000,Accumulated depreciation 62000

Machinery 19800,Accumulated depreciation 3000

buildings 48000,Accumulated depreciation 4000

land 80000

cash 2000

Accounts recivable 12000

Total Aseets 226400

equity

Share capital 50,000 =48000

Retained earnings 25600

Total equity. 73600

Liabilities

Loans. 64000

Provisions. 28000

Payables. 42000

Accounts payable 18800

total liabilities 152800

Bombora Ltd is involved in the manufacture of French perfume. The company was established by the Bombora family over 100 years ago. The family became very wealthy as their perfumes were prized by the fashion conscious in the community. However, the current manager, Brigitte Bombora, wants to retire and leave the business to the family. The two girls who are the daughters of Brigitte do not want to continue in the family business. Brigitte then offers to sell the business to two girls who are the daughters main rival, Dietrich Ltd, which is headed up by the manager and owner, Marlene Dietrich.

Marlene and Brigitte come to an agreement by which Dietrich Ltd will take over Bombora Ltd. Dietrich Ltd will acquire all the assets of Bombora Ltd except for the cash and the motor vehicles and assume all liabilities of Bombora Ltd except for the accounts payable. In exchange, Dietrich Ltd will give the shareholders of Bombora Ltd a block of land valued at $95,000 and a motor vehicle valued at $20,400. These assets are currently held by Dietrich Ltd. The land is carried at cost of $40,000 while the motor vehicle is carried at $20,000, being cost of $21,000 and accumulated depreciation of $1,000. Dietrich Ltd will also provide sufficient additional cash to enable Bombora Ltd to pay off the accounts payable and the liquidation expenses of $1,400. On liquidation of Bombora Ltd, the land and the motor vehicles will be distributed to the daughters of Brigitte Bombora.

Dietrich Ltd incurred legal and valuation costs of $2,500 in undertaking the business combination.

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

Fair Value

Land. 100,000

buildings 56000

machinery 20000

delivery trucks. 30000

Inventories. 20000

Dietrich Ltd also recognised the brand Bombora that was not recognised in the records of Bombora Ltd as it was an internally developed brand. It was calculated that this brand had a fair value of $28,000.

Required:

Prepare the journal entries in Dietrich Ltd to record the acquisition of the assets and liabilities of Bombora Ltd. Accounting for income taxes is not required. Show workings, narrations are not required.