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 50,000 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	10 000	7 000	8 000
Machinery	40 000	30 000	35 000
Accounts payable	3 000	3 000	3 000

Additional information:

Edison Ltd had not recorded an internally generated trademark. Thomas Ltd estimated the fair value of this trademark to be $60,000.

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.