Thomas Ltd purchased from Edison Ltd the following parcel of assets and liabilities representing a business. In exchange for these assets and liabilities, Thomas Ltd issued 30,000 shares, and the fair value of each share at the acquisition date is $2.20. After the transaction, Edison Ltd continued in business otherwise unaffected. Cost ($) Carrying amount ($) Fair value ($) Accounts receivable 19 000 18 000 16 000 Machinery 100 000 75 000 80 000 Accounts payable 4 000 4 000 4 000 Additional information: Edison Ltd had not recorded a legal claim as a liability due to the uncertainty of an outcome. Thomas Ltd estimated the fair value of this contingent liability to be $20,000. Required: a) Prepare all necessary journal entries to record the above acquisition. (Using the provided journal entry template to enter your answer; workings/calculations or narrations are NOT required.) b) If the parcel of assets and liabilities does not represent a business, list any accounts that would be recorded in a) but should not be recognized anymore in Thomas Ltd's record. Explain the reason.